Why IMAX Stock Trounced the Market Today
Key Points
He feels it has upside approaching 60%.
In his view, recent selloffs have made it an obvious bargain.
- 10 stocks we like better than IMAX ›
IMAX (NYSE: IMAX) stock was something of a star entertainer on Hump Day. The large-format cinema company posted a relatively large gain that trading session; it rose by nearly 3% on the back of a very positive analyst update issued in the morning.
The show must go on
Benchmark prognosticator Mike Hickey felt compelled to reiterate his buy recommendation and $60-per-share price target on IMAX in a new note. That's quite the bullish outlook, as that $60 is 56% higher than the specialty entertainment company's most recent closing share price.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
In Hickey's opinion, according to reports, investors had been selling IMAX on diminished expectations for second-quarter box office receipts and the fading hope that management was looking to sell the company, presumably at a generous premium.
This sell-off has notably undervalued the stock, Hickey wrote, and meanwhile, its fundamentals continue to look solid, and this summer's movie slate appears very promising.
Undervalued and different
I believe Hickey makes some strong points about the current status of IMAX stock. Many investors, at least until Wednesday, were indeed underestimating its potential at the start of the summer that could very well be an excellent one for the movie business. I'd also point out that the company operates an asset-light business model, as opposed to the more burdensome traditional film exhibition strategy.
Like those suddenly bullish market players who pumped up IMAX's shares that day, I'd consider buying them as well.
Should you buy stock in IMAX right now?
Before you buy stock in IMAX, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IMAX wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,208,693!*
Now, it’s worth noting Stock Advisor’s total average return is 917% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 8, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
