IMAX Corporation (NYSE:IMAX) is one of the best communication services stocks according to Hedge Funds.
On January 5, Mike Hickey from Benchmark Co. reiterated his Buy rating for IMAX Corporation (NYSE:IMAX). The analyst set a price target of $42, which results in an upside of 23%. He labeled the stock as a 2026 Entertainment & Digital Media (EDM) Top Idea, based on several structural factors, including a favorable outlook on the company’s global box office share that currently stands above $1.25 billion.
Fer Gregory/Shutterstock.com
Hickey also referred to the company’s rising operating leverage and network expansion that backs his bullish stance, following a record performance during 2025. These factors have pushed the company’s adjusted EBITDA margins up to the mid-40% range. He sees IMAX’s differentiation in its asset-light platform, which offers high utilization and strong free cash flow conversion rates.
On December 18, Wells Fargo analyst Omar Mejias also reaffirmed his Buy rating for the company. Based on his bullish views, he raised the stock’s price target from $40 to $47. His revised estimates give investors an attractive upside potential of almost 38%.
Mejias increased his price target based on the company’s diversified business model that is strongly positioned to benefit from evolving trends within the industry. The analyst highlighted an accelerated demand for premium, event-driven cinema and local-language hit-making. Mejias sees Imax Corporation (NYSE:IMAX) as being well prepared to capitalize on such a noticeable shift, given their enhanced visibility, expansion of total addressable market, and a high level of operating leverage.
IMAX Corporation (NYSE:IMAX) operates within the entertainment industry and functions as a technology platform. The company runs globally through content, technology, and services segments. They specialize in motion-picture technologies, as well as large-format motion-picture presentations. Other offerings include film remastering, streaming technology software, film and digital cameras, and post-production services.
While we acknowledge the potential of IMAX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.
Disclosure: None. This article is originally published at Insider Monkey.
