Lions Gate Entertainment Retains Buy Rating (LGF)
Lions Gate Entertainment (NYSE: LGF) released stronger than expected fiscal March quarterly earnings after the closing bell yesterday. The company’s adjusted EBITDA stood at $129 million, surpassing a pre-release estimate of $115 million. It recorded $431 million in revenues. Lions Gate (LGF) benefitted from stronger home video and television revenue. According to Soleil Securities, the company is likely to grow its revenue by 8% to $1.7 billion in F2011. Its adjusted EBITDA is expected to be at $120 million.
Soleil Securities has reiterated its Buy rating for the stock. The company has been given a price target of $8, although the firm believes that it has $10 per-share private market value. The report also suggested that given the fundamental upside, Carl Icahn may raise his $7 per share bid for the company.
