Barrington Reiterates Outperform Rating, $37 PT on IMAX Corporation on Growth Trends

In a report published Monday, Barrington reiterated its Outperform rating and $37.00 price target on IMAX Corporation (NYSE: IMAX).

Barrington noted, “We recently hosted IMAX management on a series of strategically focused investor meetings. IMAX remains a priority name for Barrington reflecting our belief that the reinforcing dual initiatives of an expanding global screen platform, plus increasingly effective monetization of its screen asset base, point to a combination of expanding top line and improving margins. While these growth trends can be lumpy reflecting variability as to the seasonal patterns characterizing the flow of incremental screen additions as well as the inherent hit driven nature of movie product, we feel that over time these elements will prove transient in the context of a longer-term creation of higher revenues and profitability. Top-line gains and improving profitability characteristics should carry significantly less volatility as the growing portfolio of films and ability to manage that portfolio counteracts to some degree the inherent hit-driven nature of theatrical product.”

IMAX Corporation closed on Friday at $25.04.