IMAX Secures Box Office Win With Dune Part 2: Analyst Predicts More High-Profile Projects And Global Expansion

Wedbush analyst Alicia Reese reiterated an Outperform rating on the shares of IMAX Corp IMAX with a price target of $22.

According to the analyst, IMAX earned over $32 million on the global opening weekend of Dune Part 2, or 18% of the global box office.

Domestically, the title earned $18.5 million, or 22.7% of the total box office, representing the largest March domestic opening in IMAX's history. 

Like Oppenheimer and several other titles before it, Dune Part 2 was filmed entirely with IMAX cameras, allowing for a fully integrated marketing campaign, driving the high box office take rate, said the analyst.

IMAX will have Dune Part 2 on its screens for four weeks, likely maintaining its high take rate and based on the fan reactions on various platforms, the analyst expects a very high rate of repeat theater visits.

The analyst opines that IMAX no longer has to sell directors or studios the benefits of filming with its cameras but it is parlaying all the awards season buzz around Oppenheimer and the theatrical buzz around Dune Part 2 to book more projects with its cameras.

The company's guidance is for 120 – 150 installations for 2024 and is expanding increasingly outside of China, focusing on locations with higher per-screen averages like Japan, South Korea, and France, noted the analyst.

It had 128 installations in 2023, 61 outside North America and China. In the time ahead, according to the analyst, IMAX can roughly double its screen base domestically and globally and will focus on maximizing value per screen. 

Price Action: IMAX shares are trading lower by 0.09% at $16.85 on the last check Monday.

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