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B. Riley analyst Eric Wold notes that with so many 2020 films pushed in next year, “2021 could bring the company the most IMAX-friendly film slate in decades.”
Luke Sharrett / Bloomberg
The new year could give a big boost to a big screen movie theater series
IMAX.
IMAX (ticker: IMAX) could benefit from the fact that so many 2020 films were submitted next year as the pandemic pandemics close this year, forcing studios to be more strategic in terms of how they identify their key barriers.
“We believe 2021 could bring the company the most IMAX-friendly film slate in decades,” said B. Riley analyst Eric Wold.
Certainly, even IMAX CEO Richard Gelfond sees the opportunity, telling CNBC ‘s Closing Bell on Monday that next year was showcasing “the shame of wealth. ”
Slated for release: “Top Gun: Maverick,” “Black Widow,” and “Fast & Furious 9.”
IMAX is already benefiting from box office sales in areas of the world where filming has returned to normal, especially in China. And it will gain momentum during the New Year holidays in China in February, when filming will be popular. Half of IMAX screens are in China, Wold noted.
Shares of IMAX rose 0.85% on Tuesday but are down 12.5% this year compared to the 15.8% gain in the year
S&P 500.
Cinema chains have struggled to survive a shutdown with pandemics and occupancy restrictions this year, cutting sharply in box office sales.
A glimmer of hope surfaced over the Christmas weekend when
AT&T
(T) Warner Bros. unit. has released “Wonder Woman 1984” in theaters and its HBO Max streaming platform. The film raised $ 36.1 million worldwide. IMAX accounted for 10% of the global box office.
Wold reiterated the Buy rate on IMAX stock, and raised the price target to $ 26 from $ 18. With the stock trading at $ 17.89, the new price target implies a 45% gain. Shares are already up 60% in the past two months, Wold noted, outpacing the 13% gain in the S&P 500.
“Filmgoers want to return to theaters when they get the chance,” Wold wrote in a note. Studios including Warner Bros. and
Walt Disney
(DIS) has shifted calls to a stream as the pandemic wears off, but that could change once life returns to normal, he said.
“This is a exciting situation for the industry as economies begin to reopen. ”
Proof of that desire to return to theaters: The sale of “Wonder Woman 1984” received a boost from private screens, Warner Bros. said. in a statement Monday.
Write to Liz Moyer at [email protected]