Macquarie raises price target on top theatre pick for 2023

Macquarie analyst Chad Beynon raised the firm’s price target on Imax (IMAX) to $22 from $20 and keeps an Outperform rating on the shares. The analyst calls Imax the firm’s top theatre pick for 2023, citing the company’s strong projector backlog, improving margins, and focus on the blockbuster movies. Cinemark (CNK) is Macquarie’s second-favorite theatre name given its "clean" balance sheet, "superior" margin and lower rent theatre locations. The firm keeps an Underperform rating on AMC Entertainment (AMC), saying the company remains a "riskier investment" given its rent obligations, higher leverage, and difficult margin trajectory. Macquarie has a Neutral rating on Reading International (RDI).