Why IMAX Stock Jumped 9.8% Today
Shares of entertainment technology specialist IMAX (NYSE: IMAX) jumped as much as 9.8% higher on Tuesday. The company reported strong results for the Chinese New Year holiday over the weekend, followed by a couple of bullish analyst notes.
IMAX screenings grossed a record-breaking $25 million over the Chinese New Year weekend. That's a 45% increase over the previous record, which was set two years ago. Theaters were closed during this important holiday in 2020 due to the COVID-19 pandemic. This year's solid result was achieved despite coronavirus safety restrictions that limit Chinese movie theaters to filling no more than 75% of their installed seats.
Benchmark analyst Mike Hickey reiterated his buy rating on IMAX shares, raising his price target to $22 per share. Macquarie analyst Chad Beynon underscored his outperform rating on the stock with a price target of $24 per share. The analysts argue that IMAX is a solid performer as long as movie theaters are open to the public and safe to attend. The company also has a significant backlog of theater installations to work through and a premium brand. Beynon sees IMAX as the best investment in physical movie theaters right now.
Source Fool.com
