UPDATE: Benchmark Initiates Coverage on IMAX on Near-Term Optimism, Ongoing Performance Risk

In a report published Wednesday, Benchmark Company analyst Mike Hickey initiated coverage on

with a Hold rating and $29.42 price target. In the report, Benchmark Company noted, “We remain optimistic near term over the IMAX brand and premium ticket experience they offer to a rapidly unfolding international growth opportunity. We remain cautious over the Company's ongoing performance risk, particularly over a network growth scenario that appears to have slowed meaningfully. We believe both fiscal Q3'13 and Q4'13 financial performance could disappoint street consensus, offset somewhat by a meaningful reduction in street consensus for their fiscal Q3'13 period, as box office performance greatly disappointed original expectations.” IMAX Corporation closed on Tuesday at $29.70.