09:17 AM EDT, 09/03/2024 (MT Newswires) -- Imax ( IMAX ) is poised for market share gains in 2025 as moviegoers increasingly prefer the company's screens while the theatre company expands its global presence, Wedbush Securities said in a Tuesday client note.

The company, which designs and manufactures IMAX ( IMAX ) cameras and projection systems, is gaining market share through consumers' preference for its screens, while efforts to substantially increase its filmed-for-IMAX ( IMAX ) partnerships should drive incremental growth, according to the brokerage.

Imax ( IMAX ) is diversifying with more alternative content to boost revenue, expanding its footprint worldwide and is set to surpass peak earnings before interest, taxes, depreciation, and amortization margins in the next three years, Wedbush said.

"We think the main story here is that the number of 'filmed for IMAX ( IMAX )' titles will increase dramatically in 2025 over previous years," Wedbush analysts led by Alicia Reese wrote in the note. "This should drive meaningful market share gains next year, as IMAX ( IMAX ) is integrated into the marketing campaigns for these titles and tends to outperform at the box office."

The brokerage estimates the company to see revenue of $121.9 million in the fourth quarter versus its previous forecast for $119.9 million, based on higher expectations for content heading into the three-month period. Box office on IMAX ( IMAX ) screens is estimated to advance almost 80% annually as last year's movie slate was impacted by strikes from Hollywood writers and actors, the investment company said.

For the third quarter, Wedbush believes box office upside for Imax ( IMAX ) from Walt Disney ( DIS ) -owned Marvel's "Deadpool & Wolverine" may be offset by some poor-performing titles such as Lionsgate Films' "Borderlands." Imax ( IMAX ) could still "see better revenue" in the ongoing quarter if any of the September titles perform better than expectations. However, the firm expects box office on IMAX ( IMAX ) screens to be down 10% year over year during the quarter.

The brokerage reiterated its outperform rating on Imax's ( IMAX ) stock and raised its 12-month price target to $26 from $24.

Over the Labor Day weekend, the domestic box office raked in $102.6 million, according to BoxOfficeMojo, owned by Amazon.com ( AMZN ) company IMDb. "Deadpool & Wolverine" came in at the top, grossing $19.4 million domestically between Friday and Monday across 3,630 theaters, followed by Disney's ( DIS ) "Alien: Romulus" with $11.2 million.

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