IMAX Stock’s Rally May Be Just The Start, Morgan Stanley Says — Why ‘The Odyssey’ Is Reshaping The Moviegoing Experience

• Morgan Stanley initiated coverage with an ‘Overweight’ rating and a $63 price target.
• Global IMAX box office is projected to rise from $1.5 billion in 2026 to $1.7 billion in 2028.
• Nine of 11 analysts tracked by Koyfin rate IMAX ‘Buy’ or ‘Strong Buy.’

IMAX Corp. (IMAX) could have more room to run after its recent gains, according to Morgan Stanley, which initiated coverage of the company with an ‘Overweight’ rating and a $63 price target. The target implies over 18% upside from Wednesday’s close.

IMAX shares were trading 1.7% higher at the time of writing on Thursday.

Morgan Stanley Sees A Stronger IMAX

Morgan Stanley said IMAX is becoming “central to the moviegoing experience,” as its screen network expands and its film slate grows. The combination could create a cycle of “more screens, more releases and higher box office revenue,” supporting earnings and free cash flow growth, the firm said in a note to clients, reported CNBC.

According to TheFly, global IMAX box office is expected to grow to $1.6 billion in 2027 and $1.7 billion in 2028, Morgan Stanley said in the research note to investors, up from $1.5 billion in 2026.

IMAX specializes in technology to make movies more immersive, including high-powered film cameras and curved screens.

‘The Odyssey’ Puts IMAX In Focus

Morgan Stanley pointed to IMAX's popularity among moviegoers, particularly after the July release of “The Odyssey.” Shot entirely on IMAX film, it became the fastest movie in IMAX history to surpass $200 million in box office sales, according to the company, CNBC reported.

“The Odyssey was a wake-up call for studios/theaters, highlighting the value of IMAX,” Duran wrote.

He said studios and theatres are leaning into premium offerings as consumers continue to demand premium experiences, adding that IMAX’s brand and technology position it to benefit from that trend.

IMAX Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for IMAX improved to ‘bullish’ from ‘neutral’ in the past 24 hours, while message volume remained ‘low’ during the same period.

Morgan Stanley’s bullish view broadly matches the broader analyst picture. According to Koyfin data, nine of the 11 analysts covering IMAX rate it ‘Buy’ or ‘Strong Buy,’ while two rate it ‘Hold.’ The 12-month average target on the stock is $56.11, representing a potential upside of over 5% from the last close.

IMAX shares have gained over 42% year-to-date.

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