Barrington analyst Patrick Sholl reiterated a Buy rating on Lions Gate Entertainment Class A (LGF.A – Research Report) today and set a price target of $12.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Patrick Sholl has given his Buy rating due to a combination of factors including the strategic moves Lions Gate is making in the film and television production sectors. The company’s agreement with Amazon to shorten the pay-tv distribution window after theatrical releases is seen as a positive step to enhance the value of its productions and increase engagement on Starz. This move is expected to capitalize on marketing efforts, despite potentially reducing the transactional window.
In addition, Lions Gate’s television production is showing signs of recovery, aided by the expanded rights from the eOne acquisition, which could improve monetization. The fiscal third-quarter results have exceeded expectations with higher-than-predicted revenues and operating income, driven by robust studio operations and a strong television segment. These financial results support the reaffirmation of an OUTPERFORM rating, with a price target of $12, offering an 18% upside potential. The strong library and attractive cash flow profile are seen as supporting factors for the company’s balance sheet amidst challenges like litigation delays in planned separation.