IMAX climbs on Morgan Stanley $63 target, citing box office growth

Morgan Stanley initiated coverage of IMAX Corporation with an overweight rating. The bank set a price target of $63.00.

Analysts forecast global IMAX box office revenues will reach $1.6 billion in 2027. They expect this figure to hit $1.7 billion by 2028.

The bank projects an 11% compound annual revenue growth rate through 2028. Projections include strong growth for EBITDA and earnings per share.

A self-reinforcing cycle of more screens and films drives higher box office revenue. IMAX shares rose 2% in premarket trading following the report.