B. Riley Thinks Lions Gate’s Stock is Going to Recover

By Ryan Adsit

B. Riley analyst Eric Wold reiterated a Buy rating on Lions Gate (NYSE: LGF) today and set a price target of $34. The company’s shares opened today at $20.22, close to its 52-week low of $16.21.

According to TipRanks.com, Wold is a 5-star analyst with an average return of 10.4% and a 55.4% success rate. Wold covers the Services sector, focusing on stocks such as Salem Communications Corp., Reading International Inc, and Cinemark Holdings Inc.

Currently, the analyst consensus on Lions Gate is Strong Buy and the average price target is $28, representing a 38.5% upside.

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

Lions Gate’s market cap is currently $2.95B and has a P/E ratio of 285.86. The company has a book value ratio of 3.3954.

Based on the recent corporate insider activity of 65 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. Earlier this 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.