Why IMAX Stock Popped Today
Shares of IMAX (NYSE: IMAX) popped today, closing with gains of 14%, after getting a bullish initiation from Wall Street. Goldman Sachs kicked off coverage of the media technology company with a buy rating alongside a $14 price target, representing another 9% upside from today's close.
Analyst Michael Ng suggests that IMAX's strategy of focusing heavily on big-budget blockbuster films will position the company well for the theater industry's recovery. In contrast, smaller movies are "more susceptible to competition from alternative distribution platforms," the analyst wrote in a research note to investors. Movie theaters have been hit hard by the COVID-19 pandemic, as many have been forced to close to comply with social-distancing guidelines.
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Source Fool.com
