The model upgraded entertainment-technology company IMAX to "buy."
: IMAX swung to a first-quarter profit of $27 million, or 40 cents, from a loss of $2.6 million, or 6 cents, a year earlier. Revenue more than doubled. The operating margin rose from 6.3% to 38%. IMAX has $24 million of cash and $40 million of debt.
: IMAX has nearly tripled during the past year, outperforming U.S. stock-market indices. It trades at a price-to-earnings ratio of 36 and a price-to-book ratio of 16, 65% and 317% premiums to peer averages. It's also expensive based on cash flow.
: Of analysts covering IMAX, 10, or 71%, advise purchasing its shares, three recommend holding and one suggests selling them.
expects the stock to advance 35% to $26.
predicts that it will rise to $25.
The model upgraded Discovery Communications, broadcaster of the Discovery channel, to "buy."
: First-quarter profit increased 42% to $169 million, or 39 cents, as revenue grew 7.9%. The operating margin extended from 31% to 33%. Discovery has $691 million of cash and $3.5 billion of debt, translating to a debt-to-equity ratio of 0.5.
: Discovery has more than doubled during the past 12 months, outpacing major benchmarks. It sells for a price-to-book ratio of 1.7, a 54% discount to the industry average. It's expensive based on trailing earnings, sales and cash flow per share.
: Of researchers following Discovery, 14, or 74%, rate its stock "buy" and five rate it "hold."
offers a price target of $49, leaving a potential 25% return.
Bank of America
believes the shares will hit $43.
The model upgraded online auctioneer eBay to "buy."
: First-quarter profit gained 11% to $398 million, or 30 cents, as revenue expanded 8.7% to $2.2 billion. The operating margin inched up from 21% to 23%. eBay's balance sheet holds $4.5 billion of cash, converting to a quick ratio of 2.2, and no debt.
: EBay has appreciated 45% during the past year, more than the
S&P 500 Index
. It trades at a price-to-projected-earnings ratio of 13 and a price-to-book ratio of 2.2, 53% and 61% discounts to industry averages. It's also cheap based on sales.
: Of firms rating eBay, 16, or 52%, advocate purchasing its shares, 13 recommend holding and two say to sell them.
forecasts that the stock will rise 45% to $35 and
( TWPG) predicts $34.
-- Reported by Jake Lynch in Boston.