IMAX (IMAX) Upside Expected at B. Riley

B. Riley analyst, Eric Wold, believes investors should buy shares of IMAX (NYSE: IMAX) before earnings since it is likely to benefit from a stronger than expected Star Wars contribution through out 2016. In the current quarter, there could be as much as $10-20MM in upside.

Star Wars should provide a positive tailwind into Q1 and represent one part of an upside bias to 2016 projections. A handful of underperforming films early in the quarter put pressure on Star Wars to drive IMAX’s overall Q4 box office to a $300MM projection. With Star Wars generating an estimated $130MM+ on IMAX through 12/31, the analyst is increasingly confident in the $300MM projection with the potential for as much as $10-20MM in upside.

In addition to Star Wars, there is a likely overlooked contribution from local language film Mojin: The Lost Legend in China which he estimates could contribute $17MM on IMAX.

IMAX shares have been unfairly held back by investor concerns around the 2016 growth outlook and potential revenue share pressures from Star Wars which, the analyst believes, are misplaced and just plain wrong.

No change to Buy rating or $52 PT which is based on 22x 2017 EBITDA.

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 $35.54 yesterday.

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