Wunderlich Securities Sees Strong Divergent Opening as Good News for Lions Gate Entertainment Corp.

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In a report published Monday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $43.00 price target on
Lions Gate Entertainment Corp.LGF
. In the report, Wunderlich Securities noted, “Divergent opened at a solid $56mm stateside, and earned an A CinemaScore despite middling reviews. Disappointing the shorts, there is now minimal possibility that Buy-rated Lionsgate (LGF) will back off from production of the Insurgent sequel slated for March 2015. (Allegiant is slated for March 2016). LGF was off 8% on Friday, and although it may be premature to look for a near rebound, we adhere to our $43 price target and regard the stock as the best play on improving digital economics for the movie business as well as YA (young adult) franchise creation. Audiences were 59% female and surprisingly evenly split between over and under 25 year olds. Another anomaly was that only about 50% of attendees admitted that they had read the books vs. more than 70% for Twilight and Hunger Games.” Lions Gate Entertainment Corp. closed on Friday at $27.60.
Posted In: Analyst ColorReiterationAnalyst RatingsConsumer DiscretionaryMatthew HarriganMovies & EntertainmentWunderlich Securities
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