B. Riley Raises Price target on Lionsgate (LGF) Following Investor Day

B. Riley reiterated a Buy rating on Lions Gate (NYSE: LGF), and raised the price target to $36.00 (from $34.00), following the company's investor day. B. Riley increased FY17 and FY18 revenue estimates from $2.62B and $2.68B to $3.20B and $4.33B, while adjusted EBITDA estimates increase from $247MM and $290MM to $364MM and $781MM.

Analyst Eric Wold commented, "On Tuesday, Lionsgate Entertainment (LGF) hosted an Investor Day at Starz offices near Denver – where the management of both companies reiterated the benefits of the merger along with an updated view around upcoming growth outlooks. While we have been positive on the merger since it was originally announced in June 2016, we came away from the day’s discussions with an increasingly optimistic view around the opportunity for stronger Starz subscriber growth, content monetization and cash flows to provide an incremental tailwind for our prior expectation for improving LGF Motion Pictures and TV Production trends in the coming years – which, we believe, is represented better by cash flows than EBITDA. We are increasing our estimates as we incorporate Starz into our model and are reiterating our Buy rating on LGF with an increased price target of $36.00 (up from $34.00)."

For an analyst ratings summary and ratings history on Lions Gate click here. For more ratings news on Lions Gate click here.

Shares of Lions Gate closed at $26.09 yesterday.

You May Also Be Interested In

• Stifel Upgrades Adidas AG (ADS:GR) (ADDYY) to Buy
• Munich Re (MUV2:GR) (MURGY) PT Raised to EUR464 at RBC Capital
• Novartis (NOVN:SW) (NVS) PT Raised to CHF95 at JPMorgan