Imax Shares Surge Following Analyst Upgrade from Goldman Sachs

Imax shares experienced a notable increase on Tuesday after a significant upgrade from Goldman Sachs, marking a shift in analyst sentiment. The upgrade came from analyst Stephen Laszczyk, who had previously maintained a bearish outlook on the company, moving his rating from sell to neutral. The revised perspective reflects a growing confidence in Imax’s potential to capture market share and enhance its profitability.

In a report dated November 25, 2025, Laszczyk acknowledged that while previous concerns about Imax’s performance had materialized, such as a slower recovery in film supply and a stagnant domestic box office, the company has demonstrated unexpected resilience. He noted that Imax successfully leveraged its industry relationships and programming flexibility to reclaim margins that had dipped during the pandemic. This strategic positioning has made Imax a more attractive target for potential mergers and acquisitions.

As a result of the upgrade, Imax shares rose by $0.83, or 2.3 percent, closing at $36.83. Laszczyk highlighted that Imax’s box office performance has surpassed pre-pandemic levels, driven by factors such as improved indexing, increased contributions from international and local language films, an expanding screen installation base, and enhanced marketing efforts funded by studios.

The upgrade marks a significant turnaround for Laszczyk, who only recently maintained a sell rating with a price target of $18.00 in a report released on July 25, 2025. He emphasized that future performance will largely depend on how major Hollywood releases, including Avatar 3, perform on Imax screens in the coming years. Additionally, the sustainability of recent momentum in screen installations remains a critical factor as audiences continue to gravitate toward blockbuster films showcased on premium platforms.

The shift in Laszczyk’s outlook is particularly noteworthy given a recent interaction at the Goldman Sachs Communacopia & Technology Conference. During this event, Imax CEO Rich Gelfond challenged Laszczyk regarding the prolonged sell rating from Goldman Sachs, questioning what the company must demonstrate to prove its value beyond being merely an exhibitor. Gelfond pointed out that while Goldman had consistently raised its price targets, the rating had remained stagnant.

Laszczyk clarified that his price target was influenced more by the broader theatrical ecosystem rather than solely focusing on Imax’s business model. Yet, with this latest upgrade, there appears to be a growing alignment with Gelfond’s assertion that Imax operates differently from traditional exhibitors.

The analyst underscored Imax’s asset-light, low net leverage, and licensing-focused business model, which does not depend on generating its own intellectual property or maintaining physical infrastructure like theaters. This operating structure could make Imax an appealing prospect for potential buyers, potentially expanding the pool of interested parties in the media landscape.

As Imax continues to navigate a challenging theatrical environment, the recent analyst upgrade signals a renewed optimism about its future prospects and strategic value within the media industry.