UPDATE: Goldman Sachs Initiates Lions Gate Entertainment at Neutral on Valuation

Goldman Sachs initiated coverage on Lions Gate Entertainment

with a Neutral rating and an $18 price target. Goldman Sachs noted, "The recent acquisition of Summit (Twilight films) and the still unfolding Hunger Games franchise (3 films to go) position LGF to deliver a steady stream of FCF that will likely be used to delever and enhance equity appreciation. This point is not lost on the market, with the stock up 92% CYTD and at 10% premium to historic EBITDA multiple and a 35% premium to media conglomerates. We will look for a better entry point and more clarity on the potential for new film franchises to emerge." Lions Gate Entertainment closed at $15.97 on Wednesday.