IMAX Corp (NYSE:IMAX) is on track to report record third-quarter results, prompting Wedbush to raise its price target on the stock to $60 from $54 and reiterate its Outperform rating.
The firm expects global box office on IMAX screens to have reached a record $712 million for the quarter, well above its prior estimate of $401 million. That would push IMAX past its 2026 guidance of $1.4 billion, according to analysts.
IMAX captured 9.4% of domestic box office, compared with a 5% average in 2025 and 4% in 2023 and 2024.
For the third quarter, Wedbush forecasts revenue of $161 million, versus its prior estimate of $113 million and consensus of $150 million. It expects EBITDA of $84 million, or $91 million including non-controlling interests, and EPS of $0.98, compared with consensus of $0.76. IMAX is expected to report results the week of October 26.
Wedbush now models a 50% EBITDA margin for 2026, ahead of the company's 45%-plus target for the year. It sees IMAX's guidance to surpass 50% margins by 2028 as conservative.
The firm pointed to three growth drivers: more and better filmed-for-IMAX titles through 2028, accelerated global footprint expansion following the performance of The Odyssey, and a wider range of alternative content. It expects expansion similar to what followed Oppenheimer.
Wedbush also highlighted IMAX's increased flexibility. After a recent shortfall, the company brought back The Odyssey after one weekend and lined up bring-back titles for slower calendar weeks ahead of major releases. Wedbush said this gives fans more slate consistency and IMAX more touchpoints with them.
The next phase of growth, the firm said, will depend on better orchestrating the annual release slate. Disney has booked all its major 2027 titles on IMAX's calendar, which Wedbush said underscores IMAX's importance to major theatrical releases.
