The movie theatre operator IMAX Company (IMAX) may be one of the winners of the delayed market for large-screen movie premieres. The recent announcement of the new superhero movie shows that as soon as the lockdowns are relaxed, audiences are eager to return to cinemas.
Analysts from B. Riley Securities reiterated the “buy” outlook for IMAX Company stock at the end of December 2020 and raised the target price from $18 to $26. The release of a variety of large-budget films in 2021 reinforces the optimistic prospects for cinema operators, analysts claim. IMAX Company will also, due to its innovations, become one of the key winners of the new film season.
During the recent premiere of the film ‘Wonder Woman of 1984’ in theatres and on HBO Max, the positive prediction of B. Riley Securities is primarily focused on the estimation of cinema attendance. Nevertheless, this film, which did not earn the most flattering feedback from reviewers and audiences, proved that there is still a strong market appetite for the big screen. It will possibly be even higher after long months of isolation than in the pre-pandemic. That is why even the average standard of the film is pleased for the viewer.
Analysts however remember the improving position of IMAX Corporation in the industry, and the term a wide list of high-budget film premieres scheduled for this year a development driver.
The emphasis on high-budget blockbusters by IMAX Corporation increases the dominant position of the company in the industry and makes it less vulnerable to streaming TV services. The entertainment of IMAX technology is, in reality, the main driver leading to the arrival of cinema audiences.
The release of films from many famous franchises is expected this year, including new Marvel films. Furthermore, new films in the mega-franchises “Fast and Furious” and “Jurassic Park” are set to reinvent the histories of Batman. Disney is also expected to release the second Avatar season. The first “Avatar” became the highest-grossing IMAX movie ever in 2009.
IMAX Corporation (IMAX) fell -3.12% to $18.34.