Investors in IMAX Corporation (IMAX) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 19, 2024 $5.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also ...

Core Viewpoint - The investment rating for IMAX Corp. has been upgraded from hold to buy due to a favorable shift in cinema attendance dynamics and the company's strong positioning in the premium experience market [1][13]. Cinema Industry Trends - Cinema attendance is rebounding, with AMC Entertainment reporting its most attended and highest-grossing weekend since 2023, indicating that the cinema industry is not in permanent decline [3]. - The value proposition of cinemas has shifted from merely showing new movies to offering premium experiences that cannot be replicated at home, aligning with younger generations' preferences for unique experiences [4]. IMAX's Market Position - IMAX has returned to 2019 levels of global box office revenue, with approximately $1.046 billion in LTM box office as of 1Q24, compared to $1.1 billion in 2019 [5]. - There are 14 "filmed for IMAX" titles scheduled for 2025, more than double any previous year, indicating strong demand for IMAX content [5]. - The partnership expansion with Wanda Film, China's largest exhibitor, highlights IMAX's importance in driving cinema attendance [5]. Installation and Adoption - The number of new IMAX systems installed has increased significantly, with 47 new systems in 4Q23 and a 12% increase in 1Q24 compared to the previous year [6]. - IMAX has a backlog of 442 systems, representing about 25% of total systems installed, suggesting strong growth potential over the next 2.5 years [8]. Financial Outlook - IMAX is expected to sustain high-single-digit growth through FY27, supported by management guidance and visibility in the number of installations [10]. - The current valuation at 8x forward EBITDA suggests a potential stock value of approximately $23, assuming continued share buybacks [11]. Conclusion - The shift in the cinema industry's value proposition towards premium experiences favors IMAX, creating a positive feedback loop that encourages more studios to produce content for IMAX and more cinemas to install IMAX screens [13].

Investors interested in Film and Television Production and Distribution stocks are likely familiar with iQIYI, Inc. Sponsored ADR (IQ) and Imax (IMAX) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy t ...

IMAX Corporation (IMAX) and China's biggest exhibitor, Wanda Film, have struck a far-reaching agreement that cements their longstanding strategic partnership and fortifies IMAX's dominance in the crucial Chinese cinema market.The multi-pronged deal spans technology upgrades, new theater buildouts, extended venue renewals and potential content collaborations across films, documentaries, music, gaming and sports. At its core, the agreement ensures Wanda will maintain the largest IMAX footprint in China.Under ...

Core Insights - Imax and Wanda Film have announced a significant expansion of their strategic partnership in China, focusing on technology and content enhancement [1][2] - The agreement includes upgrading 61 top-performing Wanda locations to Imax with Laser technology and renewing up to 37 existing Imax locations over five years, with the potential for 25 new locations in the next three years [1][3] - Imax aims to enhance the cinematic experience by collaborating with Wanda Pictures on various content types, including documentaries, music, gaming, and sports [1][2] Company Developments - Wanda Film is committed to improving moviegoers' experiences by adopting premium projection technology, reinforcing its position as a leader in the Chinese film exhibition market [2] - Imax's CEO highlighted the importance of this partnership in solidifying Imax's dominance in China's largest exhibition circuit, especially with a strong lineup of films expected in the coming years [2] - The partnership is expected to open new collaboration opportunities between Wanda Film and Imax, particularly in blockbuster films and various entertainment events [2][3] Market Outlook - Imax is preparing for a robust summer film slate in 2024, featuring both Chinese and Hollywood films, with a strong content pipeline anticipated for 2025 and 2026 [2] - The 2025 global film slate will include a record 14 films shot for Imax, including a major Chinese release during the Chinese New Year holiday [3] - Wanda Film operates 381 Imax locations globally, making it Imax's largest exhibition partner [3]

Wanda Film to Upgrade 61 Top-Performing Locations to IMAX® with Laser and Collaborate with IMAX on New Events and ExperiencesSHANGHAI, June 18, 2024 /PRNewswire/ -- Wanda Film, China's largest exhibitor, and IMAX Corporation (NYSE: IMAX), IMAX China (HKSE: 1970) today announced plans to expand their longstanding strategic partnership with a sweeping agreement spanning technology and content.The agreement will secure and fortify Wanda Film's leading IMAX footprint — the largest IMAX circuit in China. Under t ...

Core Viewpoint - The Zacks Film and Television Production and Distribution industry is experiencing increased demand for digital entertainment due to operational constraints in traditional venues, benefiting companies like Warner Music Group, News Corp., Lions Gate Entertainment, and IMAX Corp. [1] Industry Overview - The industry includes companies involved in the creation, distribution, and exhibition of film and television content, with a focus on producing entertainment for various platforms [2] - IMAX specializes in advanced motion picture technologies and immersive experiences, while the financial performance of industry players is heavily reliant on global box office success and viewership ratings [2] Industry Trends - Over-the-Top (OTT) services are gaining prominence as content creators distribute through these platforms to leverage franchise popularity, although this may challenge traditional distribution strategies [3] - Binge-watching and advancements in technology have led to increased content consumption on smaller screens, prompting industry players to pivot towards digital distribution [3] - The rise of digital capabilities allows production companies to utilize AI tools for audience insights, although competition from streaming services is increasing content and marketing expenditures, impacting profitability [4] Industry Performance - The Zacks Film and Television Production and Distribution industry ranks 66, placing it in the top 27% of over 246 Zacks industries, indicating positive near-term prospects [5][6] - The industry has outperformed the S&P 500 and the Consumer Discretionary sector, with a collective stock rally of 36.2% compared to the S&P 500's 23.2% and the sector's 4.2% over the past year [7] Current Valuation - The industry is currently trading at a trailing 12-month price-to-sales (P/S) ratio of 2.05X, compared to the S&P 500's 4.1X and the sector's 1.87X, with historical trading ranges between 0.92X and 2.49X [8] Company Highlights - **Lionsgate Holdings**: This company is benefiting from strong performance in its Motion Picture and Media Networks segments, with a focus on profitability and a robust content pipeline [9][10] - **Warner Music Group**: The company is experiencing growth in Recorded Music licensing and Music Publishing revenues, with strategic investments in media platforms and partnerships enhancing its market reach [10][11][12] - **IMAX**: The company anticipates growth driven by upcoming releases and partnerships with multiplex chains, alongside a recovery in theater system installations [13][14] - **News Corporation**: The company is diversifying its revenue streams through digital transformation and strategic acquisitions, with a focus on enhancing its information services offerings [14][15]

Core Insights - iQIYI, Inc. Sponsored ADR (IQ) is currently viewed as a better value opportunity compared to Imax (IMAX) based on Zacks Rank and valuation metrics [1][3] Valuation Metrics - iQIYI has a forward P/E ratio of 10.18, significantly lower than Imax's forward P/E of 18.20, indicating that iQIYI may be undervalued [2] - The PEG ratio for iQIYI is 0.28, while Imax has a PEG ratio of 0.91, suggesting that iQIYI offers better value relative to its expected earnings growth [2] - iQIYI's P/B ratio stands at 2.49, compared to Imax's P/B of 2.60, further supporting the notion that iQIYI is more attractively priced [2] Analyst Outlook - iQIYI holds a Zacks Rank of 2 (Buy), indicating a strong earnings estimate revision trend, while Imax has a Zacks Rank of 3 (Hold), reflecting a less favorable outlook [1][3] - The improving earnings outlook for iQIYI enhances its attractiveness as a value investment compared to Imax [3]

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Group 1: IMAX Expansion in France - IMAX Corporation has signed a deal with MEGARAMA to introduce three new IMAX with Laser systems in France, doubling its presence with the exhibitor [1] - One theater will open in a major northern French city in 2025, while two others will be in the suburbs of Paris, projected to open in 2026 [1] - The deal reflects strong demand for IMAX's premium movie experience in France, following a record 2023 with over $23 million in box office revenues [1] Group 2: IMAX Technology and Locations - The new MEGARAMA locations will feature IMAX with Laser, the company's most advanced projection and audio system [2] - With this agreement, IMAX and MEGARAMA will operate six locations in France, with an additional location planned in Morocco [2] Group 3: Global Expansion Strategy - IMAX is aggressively expanding globally, including a partnership with SM Cinema in the Philippines for 10 new IMAX with Laser systems [3] - Turkey will see its first IMAX with Laser systems through a four-theater deal with CineNOVA, set to open between 2024 and 2026 [4] - A three-theater agreement with Miraj Cinemas marks IMAX's largest expansion in India in five years, with openings planned in Mumbai, Jaipur, and another city [4] Group 4: Financial Outlook - The Zacks Consensus Estimate for IMAX's 2024 revenues is $376.06 million, indicating a year-over-year increase of 0.32% [4] - The consensus estimate for 2024 earnings per share is 91 cents, suggesting a year-over-year decline of 3.19% [4]