UPDATE: Stifel Nicolaus Raises PT to $18 on Lions Gate Entertainment on FQ2 Results, Sequel Comments
Stifel Nicolaus reiterated its Buy rating on Lions Gate Entertainment (NYSE: LGF) and raised its price target from $17 to $18.
Stifel Nicolaus commented, "We are raising our target price on Lions Gate to $18 (from $17) following not only stronger 2Q13 results but some commentary on "Hunger Games: Catching Fire" costs which given the strong first installment DVD performance should improve franchise profitability. … Net domestic negative costs on "Hunger Games: Catching Fire" should be the same as the first installment of the franchise as the company was able to garner better output deal advances. This coupled with an increase in DVD/VOD expectations for the remaining installment are guided part of the increase in our target price."
Lions Gate Entertainment closed at $16.68 on Friday.
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