Market Overview

Wedbush Concerned About IMAX Corporation Over Netflix, Inc. Deal


Wedbush maintained a Neutral rating and $28 price target on IMAX Corporation (USA) (NYSE: IMAX) in a note issued Wednesday.

Netflix announced a deal on Tuesday to exclusively debut "Crouching Tiger, Hidden Dragon: The Green Legend", the sequel to the 2000 release "Crouching Tiger, Hidden Dragon." It will be shown exclusively and simultaneously on Netflix, Inc. (NASDAQ: NFLX) and in select global IMAX theaters on August 28, 2015, according to analysts led by Michael Pachter.

The analysts expressed concern because it "has become clear that IMAX did not reach any agreements with its partner theaters prior to making the Legend deal." Netflix may be seen as a threat to the traditional model of distribution by theater owners.

According to the analysts. "Regal, Cinemark, Carmike and AMC each issued statements to select press outlets that they were not happy with a debut of the film on Netflix, and stated that they would not show the film on their respective IMAX screens."

Theaters have the right to decide what films are shown on IMAX screens. As a result of the tension between theater owners and IMAX, the analysts feel "boycott of Legend could significantly impact IMAX profits from the deal."

The Wedbush price target reflects approximately a 28x multiple on its FY 2015 EPS estimate.

IMAX Corporation closed at $26.57 on Wednesday.

Latest Ratings for IMAX

Feb 2019DowngradesBuyHold
Oct 2018MaintainsBuyBuy
May 2018MaintainsBuyBuy

View More Analyst Ratings for IMAX
View the Latest Analyst Ratings

Posted-In: AMC Carmike Cinemas Cinemark Holdings Inc Michael PachterAnalyst Color Price Target Reiteration Analyst Ratings


Related Articles (IMAX + NFLX)

View Comments and Join the Discussion!

Latest Ratings

PNRJefferiesInitiates Coverage On
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Credit Suisse Initiates Hanesbrands With Outperform

Wells Fargo Downgrades Tower International To Market Perform