UPDATE: Stifel Nicolaus Raises PT to $25 on Lions Gate Entertainment on Core Unit Strength
Stifel Nicolaus maintained Lions Gate Entertainment (NYSE: LGF) with a Buy rating and raised the price target from $21.00 to $25.00.
Stifel Nicolaus analyst Benjamin Mogil noted, "We are raising our target price on Lions Gate to $25 (from $21) as the company continues to see strength in all of its core units but more importantly, better than we had expected economics on "Ender's Games" and "Divergent". To be conservative, we are assuming that "Ender's Game" does not warrant a sequel while "Divergent" does warrant a full film exploitation of the books. Given the likelihood that the company will have at least two major franchises through F2016, we believe that investors will increasingly use a standard EV/EBITDA valuation as opposed to a sum-of-the-parts method."
Lions Gate Entertainment closed at $22.28 on Tuesday.
Latest Ratings for LGF
|Feb 2016||Stifel Nicolaus||Maintains||Buy|
|Dec 2015||Bernstein||Initiates Coverage on||Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.