Benchmark continues to endorse IMAX Corporation's stock with a Buy rating and maintains a price target of $42, citing the company's solid performance in the fourth quarter of 2025 and an optimistic outlook for the year 2026. According to InvestingPro data, IMAX has demonstrated profitability over the past twelve months, with expectations for net income growth this year, reinforcing the favorable sentiment from analysts.
The research firm highlights that IMAX outperformed projections in the final quarter of 2025, with expectations for this positive trajectory to carry forward into early 2026 and sustain throughout the year. Recent box office receipts from January are estimated around $65 million as the weekend approaches, closely mirroring the $69 million total recorded throughout January in the previous year. This trend corresponds with a robust five-year return and recent upward movement in IMAX's share price, which has shown significant gains over the last six months.
Current box office performance is being propelled internationally by the film "Avatar: Fire and Ash" and the addition of "Marty Supreme" at IMAX venues. The February schedule is poised for further strength, benefiting from the timing of the Chinese New Year holiday and a diverse lineup that includes "Wuthering Heights," "Scream 7," and alternative entertainment formats such as concert films featuring artists like Stray Kids, Eric Church, Elvis Presley, and Twenty One Pilots.
Looking ahead to March, marquee titles such as "The Bride!" and "Project Hail Mary" are set to anchor box office revenue, with "Hoppers" potentially contributing additional financial gains. Although China faces more challenging year-over-year comparisons in the first quarter of 2026, other domestic and international markets may experience easier comparisons due to notable declines of 46% and 35%, respectively, in the first quarter of the previous year. InvestingPro notes that IMAX maintains a moderate debt level and holds liquid assets surpassing its short-term liabilities, positioning the company well to leverage these market opportunities.
This positive forecast supports Benchmark’s projection of sustained growth for IMAX over the coming year, upholding its $42 target valuation for the large-format cinema technology provider. Despite IMAX trading at a relatively high earnings multiple, InvestingPro analysis suggests the company’s price-to-earnings ratio is low when balanced with anticipated near-term earnings growth, hinting at an upside potential. Additional insights from InvestingPro delve into IMAX's financial health and valuation metrics in more detail.
In parallel recent news, IMAX reported record third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share amounting to $0.47, outperforming estimates by $0.09. Revenue also reached a record $106.7 million, surpassing the consensus estimate of $104.68 million. These metrics underscore IMAX’s strong quarterly performance and its ability to surpass market forecasts, setting a positive tone for investor and analyst confidence in the company’s trajectory.