JPMorgan raises Lionsgate stock rating, price target to $9

Published 31/03/2025, 07:52
JPMorgan raises Lionsgate stock rating, price target to $9

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.

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

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