Lionsgate Studios: Strategic Shift and Content Library Drive Buy Rating and Growth Potential
Patrick Sholl from Barrington has reiterated a Buy rating on Lionsgate Studios with a price target of $8.50, citing the company's strategic shift towards a tentpole-driven film slate for fiscal 2027 and a recovering television production segment. Despite a slight revenue miss in Q2, EBITDA exceeded expectations, showcasing underlying strength. Lionsgate's content library generated $1 billion in revenue last year, highlighting its long-term value. Morgan Stanley also maintains a Buy rating with a $8.00 price target.
In a report released today, Patrick Sholl from Barrington reiterated a Buy rating on Lionsgate Studios, with a price target of $8.50.
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Patrick Sholl has given his Buy rating due to a combination of factors that highlight Lionsgate Studios’ potential for growth and profitability. The company is strategically shifting towards a tentpole-driven film slate for fiscal 2027, which is expected to enhance profitability despite the initial impact on cash flow and leverage. This approach, combined with a recovering television production segment, positions the company well for future success.
Additionally, Lionsgate’s valuable content library, which generated $1 billion in revenue over the past year, underscores the long-term value of its portfolio. Despite a slight miss in revenue estimates for the fiscal second quarter, the company’s EBITDA exceeded expectations, indicating underlying strength. Sholl reaffirms an OUTPERFORM rating with a price target of $8.50, reflecting confidence in the studio’s ability to capitalize on the sustained demand for premium content.
According to TipRanks, Sholl is a 2-star analyst with an average return of 1.0% and a 36.19% success rate. Sholl covers the Communication Services sector, focusing on stocks such as IMAX, Cinemark Holdings, and Marcus.
In another report released on November 7, Morgan Stanley also reiterated a Buy rating on the stock with a $8.00 price target.
