Analyst Shines on Lionsgate6 Dec, 2007 By: Erik Gruenwedel
Wedbush Morgan Securities late last month upgraded shares of Lionsgate just weeks after the Santa Monica, Calif.-based minimajor posted a second-quarter loss of $56 million.
The Los Angeles-based firm upgraded shares of Lionsgate from “buy” to “strong buy” on the belief the studio's stock price can reach a target $13 per share and $11.50 per share in the short term.
The investment firm said the studio's record quarterly revenue of more than $343 million and projections of more than $230 million in the current 2008 fiscal year on five pending theatrical releases augers well for the near future.
“We think a strong fiscal third quarter and fourth quarter results, accompanied with a solid 2009 guidance, should provide ammunition to motivate some investors,” said analyst William Kidd, in the note.