IMAX (IMAX) is expected to post modest Q2 growth before a significantly stronger H2, supported by a stronger lineup of filmed-for-IMAX releases, alternative content and international titles, Wedbush said in a Thursday note.

The brokerage expects Q2 revenue of about $94 million and adjusted earnings before interest, taxes, depreciation and amortization of about $39 million, citing weaker-than-expected performance in China and a domestic box office mix skewed toward family films, which typically generate lower IMAX market share.

Wedbush said it expects IMAX to meet its 2026 guidance for about $1.4 billion in global box office, representing roughly 12% year-over-year growth, system installations of 160 to 175, and an adjusted EBITDA margin of more than 45%.

The firm said IMAX is well positioned for stronger growth through 2028, supported by an expanding film slate, more local-language and alternative content, and continued growth of its global theater network.

Wedbush maintained its outperform rating and $46 price target on the stock.

Shares of IMAX were down 2.3% in Thursday trading.

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