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On Monday, JPMorgan analyst David Karnovsky upgraded Lionsgate stock, traded on the New York Stock Exchange under the ticker NYSE:LGF-A, from Underweight to Neutral, simultaneously raising the price target from $8.00 to $9.00. This adjustment comes as Lionsgate prepares for a significant corporate event, with the upcoming separation of its Starz network and Lionsgate Studios divisions anticipated to follow a shareholder vote scheduled for April 23.
Karnovsky’s upgrade reflects a change in perspective on the company’s potential for value creation, particularly after the filing of a definitive proxy, which indicates the near-term completion of the split. The separation aims to resolve a previously unfavorable structure for investors, which was a contributing factor to the analyst’s earlier negative stance on the stock.
Additionally, the analyst expressed a more positive outlook on Lionsgate’s Motion Pictures segment, noting that it has overcome a challenging period. Expectations for a stronger theatrical performance in the fiscal year 2026 are supported by an upcoming slate of releases. Further bolstering this optimism is a new agreement with Amazon (NASDAQ:AMZN), which is set to enhance the segment’s downstream revenue opportunities.
While Karnovsky has adopted a more favorable view of the Starz network after management’s detailed presentation of the medium-term outlook, he maintains long-term reservations due to the highly competitive nature of the streaming market. Despite these concerns, the immediate future for Lionsgate appears to be on a more stable footing, leading to the adjusted stock rating and price target.
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