UPDATE: Wunderlich Securities Reiterates Buy Rating, Lowers PT on Lions Gate Entertainment Corp. on Attractive Repurchase Opportunity

In a report published Monday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating on Lions Gate Entertainment Corp. LGF, but lowered the price target from $43.00 to $37.00. In the report, Wunderlich Securities noted, “We are lowering our S&P 500 linked price target on Buy-rated Lionsgate (LGF) to $37 from $43, although we regard this as a conservative assessment even with our model conformed to slightly below $1.3bn in cumulative adjusted EBITDA through F2017 following last Friday's guidance. We actually think that Lionsgate stock is now priced for only $850mm in total EBITDA over that forecast period, after carefully adjusting WSI's model flow to adjust for cumulative free cash flow variations off operating performance rather than just taking a ‘back of the envelope' approach. We remain optimistic on Lionsgate's committed product and development pipelines for both film and television, and also think that the stock level now offers an attractive opportunity for further share repurchases.” Lions Gate Entertainment Corp. closed on Friday at $26.13.