Analyst Raises Lionsgate Price Target, Cites Summit Acquisition Gains
“Summit's strength is its international distribution deals, and stronger overages from the entire Twilight series and Hunger Games,” Stifel Nicolaus analyst Ben Mogil wrote.
TORONTO – The Summit Entertainment acquisition is driving stronger international results, Stifel Nicolaus analyst Ben Mogil wrote in a report Monday as he raised the price target for the mini-studio’s stock.
“Summit's strength is its international distribution deals, and stronger overages from the entire Twilight series and Hunger Games,” Mogil wrote as he raised his target from $25.00 to $29.00 and retained his “buy” rating.
“This is across all international distribution windows, but particularly television where SVOD abroad is becoming a more material contributor, particularly in the U.K.,” he added.
The report also pointed to “better domestic film rental splits” and a “continued floor” on home entertainment for key movie franchises.
Mogil said Lionsgate was materially ahead of its three-year $900 million EBITDA guidance, prompting a boost to the analysts’ profit estimates for the fourth quarter of 2013.
The analyst also anticipates no sequel for Ender's Games and “moderate performance” from Divergence as Lionsgate continues to make its mark in the YA movie space.
And Mogil put a $125 million valuation on Lionsgate’s stake in TV Guide after CBS’ purchase of the other portion. His previous assigned value was $50 million.
Stock in Lionsgate was trading mid-morning Monday at $27.73, up 21 cents on the day and near a 52-week high of $27.98.
- MOST SHARED
- MOST POPULAR
- Beyonce Surprises Fans With New Album Featuring Jay Z, Blue Ivy, Drake
- A Christmas Gift For You: A Conversation with Phil Spector & The Crystals' La La Brooks, Chatting with The Piano Guys, Plus Pink Martini and Sydney York Exclusives
- Live from the Dubai International Film Festival: Thursday, Dec. 12
- 'Grey's Anatomy' 'Get Up, Stand Up' Recap: They Love Each Other!