Imax (IMAX) is likely to surpass "peak" EBITDA margins in the coming two years due to "strong" international trends and other factors, Wedbush said in a Monday note as it maintained the company on its best ideas list.

The entertainment technology company benefits from rising volume and quality of filmed-for-IMAX titles, increasing international presence, less reliance on Hollywood, and more alternative content that is boosting revenue, Wedbush analysts said.

For Imax, a "premium valuation is reasonable," and it is poised to benefit in the short-term due to a "solid" upcoming Q4 slate, the analysts said.

The analysts also said they believe Imax can roughly "double" its screen base and enhance its yearly screen growth as its theater collaborators return to profitability and have more available cash to upgrade their operations.

Wedbush raised its price target to $39 from $35 while maintaining an outperform rating on the stock.

Shares of the company were up 1.5% in recent early trading.

Price: 32.43, Change: +0.47, Percent Change: +1.47