Wunderlich Securities Sees Plausible Upside Ahead for Lions Gate Entertainment Corp.

In a report published Thursday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $37.00 price target on

. In the report, Wunderlich Securities noted, “Although Buy-rated Lionsgate (LGF) stock has had a 25% bounce since its late May low after guidance for $1.2-1.3bn in 3-year cumulative forward EBITDA through F2017, we see plausible upside to this level and estimate that the stock is now priced for only about $1.1bn in cumulative EBITDA generation. We are not yet raising our formal $37 price target, given the big bounce and what we perceive as likely down 17.5% yoy FQ2 adj. EBITDA. However, development of the TV business along with digital streaming benefits for film can complement Lionsgate's strong new release pipeline in delivering profit upside. TV can certainly deliver upside off elements such as new shows like Manhattan, and from syndications such as Anger Management, and Netflix (NFLX) hit Orange is the New Black.” Lions Gate Entertainment Corp. closed on Wednesday at $32.66.