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Analyst Raises Lionsgate Price Target on Movie Pipeline Strength

“We continue to see plenty of momentum at Lionsgate, with a strong slate, improving television business and upside to our earnings forecasts,” Piper Jaffray analyst James Marsh wrote.

TORONTO – Anticipated continued success from Lionsgate’s film slate and TV division has Piper Jaffray analyst James Marsh raising his price target for the mini-studio’s stock.

“We continue to see plenty of momentum at Lionsgate, with a strong slate, improving television business and upside to our earnings forecasts,” Marsh wrote Thursday as he raised his target from $27.00 to $32.00.

The report increased earnings estimates for the mini-studio “driven by more confidence in Twilight DVD sales and international box office overages.”

Marsh argued that Lionsgate needs to build on its Hunger Games success, which is baked into the share price, by extending the Twilight franchise and potentially creating new ones from its upcoming Ender’s Game and Divergent releases.

On the TV side, the report cited more deliveries of Anger Management and Nashville episodes during the latest quarter, and additional revenue from Netflix for the fifth season of Mad Men, to underscore momentum.

Lionsgate, which reports its fourth quarter results on May 30, saw its stock price close Wednesday on the New York Stock Exchange at $26.55, down 76 cents or 2.78 percent on the day.