Dougherty & Co Cuts Price Target on IMAX (IMAX), Still Showing Signs of Strong Growth
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Price: $52.88 -0.71%
Rating Summary:
15 Buy, 7 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co is reaffirming its Buy rating on shares of IMAX Corporation (NASDAQ: IMAX) while lowering its price target from $35 to $30.
The firm reports that the overall macro economy and weak box office movies has caused the company to take a more conservative approach in their outlook.
Following the company reporting that gross box office totaled $120 million for the third quarter through mid August, the firm is cutting its third and forth quarter gross box office estimates from $160 million and $100 million to $150 million and $95 million. Dougherty & Co. is also reducing its EPS estimates for the two quarters to $0.22 and $0.17. For 2011 and 2012 the firm currently estimates EPS of $0.50 and $1.15.
Dougherty & Co. believes that the main story behind IMAX is its network growth, which it continues to exceed in.
An analyst at Dougherty & Co. comments, "While this year’s box office has been somewhat disappointing, Imax remains a growth story with plenty of runway ahead driven by a growing global network, an expanding film slate and margin expansion delivering strong EBITDA growth. We believe the current sell-off in the shares creates a buying opportunity."
For more ratings news on IMAX Corporation click here and for the rating history of IMAX Corporation click here.
Shares of IMAX Corporation closed at $27.57 yesterday.
The firm reports that the overall macro economy and weak box office movies has caused the company to take a more conservative approach in their outlook.
Following the company reporting that gross box office totaled $120 million for the third quarter through mid August, the firm is cutting its third and forth quarter gross box office estimates from $160 million and $100 million to $150 million and $95 million. Dougherty & Co. is also reducing its EPS estimates for the two quarters to $0.22 and $0.17. For 2011 and 2012 the firm currently estimates EPS of $0.50 and $1.15.
Dougherty & Co. believes that the main story behind IMAX is its network growth, which it continues to exceed in.
An analyst at Dougherty & Co. comments, "While this year’s box office has been somewhat disappointing, Imax remains a growth story with plenty of runway ahead driven by a growing global network, an expanding film slate and margin expansion delivering strong EBITDA growth. We believe the current sell-off in the shares creates a buying opportunity."
For more ratings news on IMAX Corporation click here and for the rating history of IMAX Corporation click here.
Shares of IMAX Corporation closed at $27.57 yesterday.
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