Benchmark Upgrades IMAX Corporation (IMAX) to Buy; Optimistic on Long-Term

April 28, 2020 5:59 AM EDT
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Price: $15.37 +1.52%

Rating Summary:
    10 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 26 | New: 45
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(Updated - April 28, 2020 8:12 AM EDT)

(updated to add analyst comments)

Benchmark analyst Mike Hickey upgraded IMAX Corporation (NYSE: IMAX) from Hold to Buy with a $14 price target.

The analyst commented, "We are upgrading IMAX to Buy with a $14 price target. We are optimistic that over time COVID-19 treatment options will improve, a vaccine will be produced, rapid testing options will emerge and/or will have a test to measure immunity. We are also encouraged to see IMAX's key exhibitor partners take measures to enhance liquidity, demonstrate a commitment toward new theater builds in China and the gradual reopening of theaters in U.S. We suspect that over the long-term movie-goers will return to the cinema, buoyed by a strong slate of films, a behavior trend toward normalcy and a need for escapism where cinema growth has proven countercyclical. We believe IMAX can achieve a significant reduction in monthly cash burn and has enough liquidity to make it through +FY21. IMAX ended FY19 with $109M in cash and $280M borrowing capacity on revolver. IMAX is expected to deliver F1Q20 performance on Thursday, April 30 at 8:30am EST, dial-in number 800.458.4148 and passcode 2512506."

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 $11.08 yesterday.

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