Market Overview

Improving Starz Content Prompts SunTrust To Turn Bullish On Lions Gate

Share:

Shares of Lions Gate Entertainment Corp. (NYSE: LGF-A) (NYSE: LGF-B) are likely to move higher over the coming quarters as investors better appreciate Starz's contribution, according to SunTrust.

The Analyst

SunTrust Robinson Humphrey's Matthew Thornton upgraded Lions Gate from Neutral to Buy with a price target lifted from $27 to $31.

The Thesis

Among the most important metrics to monitor for Lions Gate's stock is Starz' subscriber count as the segment accounts for 65 percent of the total segment profit, Thornton said in a note. Encouragingly, a handful of readouts support momentum among Starz's content, including:

A surge in viewership on the app after the release of "Power" season five;

The No. 2 show "Outlander" continues to perform well; and

The launch of Starz's platform on Amazon Prime Video UK and Germany and YouTube TV USA should be followed by more launches with multiple partners worldwide and could add several hundred thousand new subs this fiscal year alone.

The multiple encouraging readouts, coupled with the stock trading in the low $20 level, gives investors a positive set-up in the stock ahead of what should be strengthening Starz subscribers and an ongoing international expansion.

Price Action

Shares of Lions Gate were trading higher by 4.5 percent Thursday.

Related Links:

Lions Gate's Investment Profile Is 'Simple To Digest,' Imperial Says In Bullish Initiation

Starz Acquisition Still Carries 'Significant Risks' For Lions Gate Entertainment

Posted-In: Matthew Thornton Outlander powerAnalyst Color Upgrades Price Target Analyst Ratings Media

 

Related Articles (LGF-A + LGF-B)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NFLXKeyBancDowngrades0.0
DLTRKeyBancMaintains108.0
LRCXKeyBancMaintains231.0
AKRXPiperJaffrayUpgrades9.0
ANETBMO CapitalUpgrades279.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Some Perspective On Netflix's Subscriber Figures

Piper Jaffray Raises Funko Price Target, Projects 'Strong Commercial Opportunities'