Rosenblatt Securities analyst Steve Frankel reiterated a Buy rating on the shares of IMAX Corporation (NYSE:IMAX) on Wednesday, with a price forecast of $35.00.

Ahead of IMAX’s upcoming first-quarter earnings report, the analyst has raised the forecasts to better align with consensus, citing strong box office performance.

The film generated $162.6 million for IMAX, ranking among the company's top six highest-grossing titles and top three by ticket admissions.

Regionally, first-quarter box office figures showed a mixed picture: North America declined 46% year over year to $51 million, while Greater China surged 135% to $167 million. The rest of the world dropped 35% to $62 million.

Reflecting these results, the first-quarter earnings estimates are revised up to $82.7 million in revenue and $24.3 million in earnings, approaching the consensus of $83.5 million and $28.5 million. The updated full-year estimates of $420.0 million/$164.1 million compare to a consensus of $405.9 million/$156.3 million.

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IMAX shares declined earlier in the week following reports suggesting China might limit Hollywood film imports amid ongoing trade tensions. However, there has been no official confirmation or coverage from major Chinese media outlets.

Given the importance of moviegoing to China's broader economic sectors, such as retail and real estate, the analyst doubts the government would take actions that could harm the exhibition industry.

If China limits Hollywood film imports, IMAX can pivot by showcasing more domestic films and proven alternatives like Japanese anime, which have performed well in the market.

The second quarter has started strong, with A Minecraft Movie surpassing expectations globally, noted Frankel.

With six Filmed for IMAX titles scheduled this quarter, including Thunderbolts and Mission Impossible: The Final Reckoning, the company is positioned for potential upside beyond its $265 million global box office estimate.

The shift toward premium movie formats is also boosting IMAX's business. The company revealed key expansion deals, including AMC's plan to install 12 new IMAX with Laser screens and upgrade 68 existing ones.

IMAX recently expanded its partnership with TOHO Cinemas, adding six new IMAX with Laser locations in Japan, one of IMAX's strongest markets by per-screen revenue. This includes the first dual-IMAX complex outside North America, reflecting growing demand for diverse content.

Frankel observed that IMAX is benefiting from a blockbuster-heavy 2025–2026 slate, tighter cost control (especially in China), and stronger partnerships with studios and streamers.

Price Action: IMAX shares traded lower by 4.51% at $22.43 at last check Thursday.

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