Shares in giant screen cinema specialist IMAX rose 3.82 per cent in trading on February 20th, helped along by a rumour that the business could be a takeover target.
The report, from MKM Partners and their analyst Eric Handler (a regular contributor to CNBC’s Power Lunch stock-picking segment) said that IMAX could be a good fit for Sony.
Handler has been upbeat about cinema chains over the past few weeks, saying that outfits such as AMC Theatres and Cinemark could represent good opportunities. He recently reminded clients that Cinemark – where 45 per cent of its international revenues comes from Brazil – was off to a “hot” 2019 helped by a 12 per cent jump in attendance y-o-y.
MKM have a ‘BUY’ rating on IMAX and a share price target of $27. February 20th saw trading around the $21.75 level.