What Happened?
Shares of premium cinema technology company IMAX (NYSE:IMAX) jumped 0.2% in the morning session after Benchmark maintained its 'Buy' rating and a $32 price target on the stock, citing strong third-quarter box office momentum.
The research firm expressed confidence that IMAX is positioned to exceed third-quarter expectations, noting that the global box office has already reached approximately $240 million and is trending to surpass the consensus estimate of $286 million. This positive outlook is supported by strong indexing trends and the continued resonance of the IMAX brand with consumers, which drives market share gains. The stock's move builds on recent momentum, having gained significantly over the past week. The bullish sentiment also follows a strong second quarter where the company reported a 139% surge in net income and a record box office in North America.
After the initial pop the shares cooled down to $29.01, up 0.1% from previous close.
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What Is The Market Telling Us
IMAX’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.8% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
IMAX is up 15.5% since the beginning of the year, and at $29.01 per share, it is trading close to its 52-week high of $29.24 from June 2025. Investors who bought $1,000 worth of IMAX’s shares 5 years ago would now be looking at an investment worth $1,848.
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