B. Riley Securities initiated coverage of Lionsgate Studios with a Neutral rating and a $17 price target, citing improving operating fundamentals but a full valuation after the stock's recent rally. The price target represents about 11% upside from the stock's last close at $15.31 on Tuesday. The brokerage noted the Motion Picture business is supported by the strong box office performance of Michael, a film pipeline anchored by franchises including The Hunger Games, John Wick, and The Resurrection of the Christ, and a recovery in the theatrical market. It also expects the Television Production segment to rebound in fiscal 2027, driven by higher scripted episodic deliveries, stable library revenue, and easier year-over-year comparisons. B. Riley forecast fiscal 2027 revenue and adjusted OIBDA growth, alongside improving free cash flow that should support a gradual reduction in leverage over time, but flagged leverage as a near-term constraint with about $1.94 billion in long-term debt and net leverage of 6.1 times entering fiscal 2027. The firm said acquisition speculation is likely to remain part of the investment narrative following Lionsgate's separation from Starz, while adding that the timing of any potential transaction remains uncertain, and based its $17 price target on a 17.2-times multiple of its fiscal 2027 adjusted OIBDA estimate.
Lionsgate Studios Holding Corp. B. Riley initiated coverage with a Neutral rating and $17 price target, citing improving fundamentals and upside potential.
Starz Entertainment LLC