While Imax Corp (USA) (NYSE:IMAX) may have had some differentiating advantages that gave it a competitive edge in a changing movie business, this may no longer be the case, according to Piper Jaffray.
The Analyst
Piper Jaffray's Stan Meyers downgraded Imax's stock rating from Overweight to Neutral with a price target slashed from $28 to $21.
The Thesis
Imax faces pressure on six different fronts that drove Piper Jaffray's downgrade, Meyers said in a research report. (See the analyst's track record here.)
They are:
Looking forward to the full year 2018, Meyers said he sees "limited" box office growth despite a film slate loaded with Imax-friendly films. The company is now expected to earn 88 cents per share in fiscal 2018 on revenue of $360.1 million versus the analyst's prior estimate of $1.18 per share on revenue of $400.7 million. The Street's estimate stands at 95 cents per share on revenue of $404.6 million.
Price Action
Shares of Imax were trading flat at $20.45 late in Wednesday's trading session.
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