Contra-opinion on $IMAX
Check this contra-opinion —- Brigantine says Imax has undergone a significant transition — from film to digital, from the museum to the mall and from highly leveraged cash constrained business to one with a clean balance sheet and strong profitability. Firm notes rising consumer interest in 3D and strong support from exhibitors and studios paves the way for the company’s continued success. On the heels of a big Q4 and headed into an even better Q1, they are raising ests and tgt to $22 from $14, reflecting a 25x multiple on new De10E EPS of $0.90. Firm says Imax reported a monster fourth quarter as the combination of the expanding joint venture model and a strong film slate drove growth well beyond their expectations. The company reported EPS (ex-SBC) of $0.20. They had modeled $39.6M/$0.08 and the consensus (which contains a mix of estimates with and without SBC) was $45.3M/$0.08. Firm says note that on a GAAP basis the company reported EPS of $0.07, which included the impact of $8.9 mln in charges related to stock appreciation rights.