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Tuesday, Benchmark analyst Matthew Harrigan maintained a Buy rating on Lionsgate (NYSE:LGF-A) shares, with a price target of $13.00. Harrigan’s statement highlighted the company’s recent management presentation, which detailed the mechanics of its planned separation transaction and showcased the strong intellectual property of its Motion Picture and Television Studios, as well as Starz.
The presentation, which took place last Thursday after market close, emphasized Lionsgate’s robust film and TV library, which has seen a compound annual growth rate (CAGR) of 10% since fiscal 2019. This includes growth through mergers and acquisitions, notably the acquisition of Entertainment One (eOne). Harrigan pointed out the solid foundation this provides for the company’s performance.
Furthermore, the analyst underscored Lionsgate’s advantageous position in the event of an advertising recession, considering the shift towards digital platforms and the ongoing decline of linear networks. He noted that both the Studio and the now predominantly digital Starz business are well-placed to navigate potential market challenges.
Harrigan encouraged investors to review the full presentation deck for a more detailed understanding of Lionsgate’s strategic plans and market positioning. The presentation includes select slides that complement Benchmark’s valuation work and provide further insights into the company’s prospects.
Lionsgate’s strategic moves and the strength of its content library appear to be key factors in Benchmark’s continued endorsement of the stock. The analyst’s reiteration of the $13.00 price target follows the company’s efforts to communicate its value proposition and future plans to investors.
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