IMAX (IMAX) China Stub Worth $17-$20/Share, Stifel Notes

Stifel analyst Benjamin Mogil weighed in on news IMAX Corporation (NYSE: IMAX) filed an IPO application for IMAX China in Hong Kong.

Mogil commented, "For comparable purposes, Wanda Cinema Line trades at 44x 2015E EV/EBITDA. While a Hong Kong listing comes at a valuation discount to a Shanghai listing, where Wanda trades, we estimate that the IMAX China business will trade around 25x 2016E EV/EBITDA, well ahead of IMAX's current 17.6x 2015E EV/EBITDA and 16x 2016E EV/EBITDA, leading the parent company to trade higher as well. For illustrative purposes, at 25x 2016E EV/EBITDA multiple, the IMAX China stub (IMAX owns 80% of the business) would be worth $17/share, and at 30x 2016E EV/EBITDA, it would be worth $20/share."

The firm reiterated a Buy rating and price target of $40 on IMAX.

For an analyst ratings summary and ratings history on IMAX Corporation click here. For more ratings news on IMAX Corporation click here.

Shares of IMAX Corporation closed at $38.77 yesterday.

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