This small-cap stock could see big gains as film industry continues poststrike normalization, analyst says

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David Joyce Noticias

IMAX Corp,Stock Markets,Investment Strategy

Seaport Research Partners initiated coverage at a buy rating.

Imax is due for a rally as Hollywood continues getting back on track after last year's strikes, according to Seaport Research Partners. Analyst David Joyce initiated coverage of the stock, known for its large movie screens, at a buy rating. Joyce's $23 price target implies the stock can rally 30% from Tuesday's closing level.

"We think there is a distinct near-term opportunity for IMAX shares to start to recognize that the film industry's theatrical release schedule will start heading toward normalcy," Joyce wrote to clients in a Wednesday note. Joyce also pointed to expansion opportunities, particularly on the international front, as another reason for optimism about the company's future performance. Imax typically grows its network base by between 5% and 6% each year, he said.

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