Imax shares slip after downgrade

Imax shares slip after downgrade Merriman Curhan Ford on stock price, rising competition

• On 1:53 pm EDT, Friday September 18, 2009

NEW YORK (AP) -- Shares of Imax Corp. slid Friday after Merriman Curhan Ford downgraded the stock, citing the company's rising stock price and new competition.

Imax shares fell 56 cents, or 5.9 percent, to $8.94 in afternoon trading.

In a note to investors, Merriman analyst Eric Wold noted that the company's stock has more than doubled since the beginning of the year.

Meanwhile it faces rising competition from Cinemark Holdings Inc. Wold said Cinemark plans to ramp up openings of its new large-format theaters from two to "as many as 100" in the next few years.

He added that Cinemark screens can run both regular and 3-D films at any time, while Imax screens require reformatting agreements with studios, meaning new releases take longer to get to Imax audiences.

"While not something to be worried about this quarter, over the coming years, we believe this could impact Imax box office results," Wold said.

He cut his rating on the company to "Neutral" from "Buy."