Maham Fatima
2 min read
On Monday, Morgan Stanley lowered its price target on Lionsgate Studios Corp. (NYSE:LION) to $8 from $8.50 but maintained an Overweight rating. This revision is attributed to updated estimates based on film timing and a challenging television production environment.
A film crew shooting a scene in the studio for a new television series produced by the company.
Lionsgate reported its FQ4 2024 results earlier on May 22 and logged $1.07 billion in revenue. While this was a 4.29% year-over-year decline, the quarterly television revenue reached $543 million, which was up 16% year-over-year. The Television Group is recovering from the industry strikes, with revenue growth fueled by an increase in episodic deliveries.
Despite near-term hurdles, Morgan Stanley expresses confidence in accelerated growth for Lionsgate in FY2027 due to the return of key franchises and robust underlying demand for film content.
The Television Group's strength is underscored by a series of key renewals, which highlight the popularity and success of its productions. Beyond these renewals, the Group is enriching its content pipeline with new premium properties. The recent separation of Lionsgate and Starz in May further empowers the Television Group with flexibility to navigate market dynamics and positions the studio at the forefront of the entertainment industry.
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Disclosure: None. This article is originally published at Insider Monkey.
