Lions Gate Receives a New Rating from Top Analyst

By Carrie Williams

Pacific Crest analyst Andy Hargreaves reiterated a Buy rating on Lions Gate (NYSE: LGF) yesterday and set a price target of $24. The company’s shares closed yesterday at $19.01, close to its 52-week low of $16.21.

Hargreaves wrote:

“We recommend owning LGF. We view in-line results and outlook positively after a string of negative revisions over the TTM.”

According to TipRanks.com, Hargreaves is a top 100 analyst with an average return of 17.5% and a 59.1% success rate. Hargreaves covers the Services sector, focusing on stocks such as Discovery Comms., MSG Networks Inc, and Scripps Networks.

Currently, the analyst consensus on Lions Gate is Strong Buy and the average price target is $28.33, representing a 49.0% upside.

In a report issued on October 28, Stifel Nicolaus also upgraded the stock to Buy with a $26 price target.

Based on Lions Gate’s latest earnings report from June 30, the company posted quarterly revenue of $553.6M and quarterly net profit of $1.25M. In comparison, last year the company earned revenue of $476.8M and had a net profit of -$42.07M.

Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LGF in relation to earlier this year. Last month, Arthur Evrensel, a Director at LGF bought 2,600 shares for a total of $48,360.

Lions Gate Entertainment Corp. engages in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales. It operates through the Motion Pictures and Television Production segments. The Motion Pictures segment consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. It is composed of two sub segments: Production and Distribution. The Production segment includes financing motion pictures, as well as the development of a screenplay, the actual filming activities and post-filming editing and post-production process. The Distribution segment distributes motion pictures directly to United States movie theatres. The Television Production segment involves in the development, production and worldwide distribution of television productions, including television series, television movies and mini-series and non-fiction programming. The company was founded by Frank Guistra on April 28, 1997 and is headquartered in Santa Monica, CA.