Benchmark initiates Lionsgate Studios stock with Buy rating on franchise strength

Published 28/07/2025, 13:18
Benchmark initiates Lionsgate Studios stock with Buy rating on franchise strength

Investing.com - Benchmark initiated coverage on Lionsgate Studios Corp (NASDAQ:LION) with a Buy rating and an $8.50 price target on Monday. The stock currently trades at $6.54, with analyst targets ranging from $8.00 to $11.61, according to InvestingPro data.

The research firm cited the studio’s valuable intellectual property portfolio, which includes global blockbuster franchises like "Hunger Games" and "John Wick," along with iconic TV series such as "Mad Men," "Weeds," and CBS’s "Ghosts."

Benchmark highlighted Lionsgate’s library, which generated approximately $950 million in high-margin, predictable sales for its most recently concluded fiscal year.

The firm noted it has followed Lionsgate’s business for over two decades when it was housed within former Lions Gate Entertainment, prior to the May 2025 STARZ spin-off.

Benchmark’s $8.50 price target represents an eighteen-month outlook for the stock, which the firm categorized as a "top indie Motion Picture and Television producer."

In other recent news, Lionsgate Studios Corp reported disappointing box office results for its film "Ballerina," which opened with $25 million domestically, falling short of the projected $35-40 million. The film has since earned $42 million in total domestic revenue. Despite this, Raymond (NSE:RYMD) James maintained its Outperform rating and set a $10.00 price target for the company, though it adjusted its OIBDA estimates downward. Loop Capital also initiated coverage of Lionsgate with a Hold rating and an $8.00 price target, citing the company’s valuation and strategic position after separating from Starz.

Lionsgate, as a standalone entity, has a vast film and TV library generating nearly $1 billion in annual revenue, making it a potentially attractive acquisition target. However, Loop Capital noted that the company’s management is focused on business growth rather than acquisition opportunities. Raymond James highlighted Lionsgate’s unique position as the only standalone public film and TV studio, distinguishing it from other media stocks affected by the declining linear TV market. Despite challenges in fiscal year 2025, including box office disappointments and TV business struggles, Raymond James sees potential for investors due to the current stock price reflecting these setbacks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.