Miller Tabak Upgrades Lions Gate (LGF) to Buy; Netflix (NFLX) Streaming Deal Equals All-Margin Incremental Revenue
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Price: $26.09 --0%
Rating Summary:
11 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Rating Summary:
11 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
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Miller Tabak upgraded Lions Gate (NYSE: LGF) from Neutral to Buy.
Miller analyst says, "We are upgrading our Lionsgate recommendation to Buy and keeping our short-term $7.50 (+15% potential appreciation) target and longer-term $12 target, for a Netflix (Nasdaq: NFLX) streaming deal for its Mad Men series that adds potentially $71 mm of pure-margin revenue over the term of the deal, which we assume to be five years. This should add about $0.50-$0.70 in value to LGF shares on DCF and sum-of-the-parts bases, to a $12.23 DCF average and $6.10 SOTP valuation, respectively – the disparity is due to the OIBDA acceleration post-2012 not being reflected in our 2012E-based SOTP."
For more ratings news on Lions Gate click here and for the rating history of Lions Gate click here.
Shares of Lions Gate closed at $6.51 yesterday.
Miller analyst says, "We are upgrading our Lionsgate recommendation to Buy and keeping our short-term $7.50 (+15% potential appreciation) target and longer-term $12 target, for a Netflix (Nasdaq: NFLX) streaming deal for its Mad Men series that adds potentially $71 mm of pure-margin revenue over the term of the deal, which we assume to be five years. This should add about $0.50-$0.70 in value to LGF shares on DCF and sum-of-the-parts bases, to a $12.23 DCF average and $6.10 SOTP valuation, respectively – the disparity is due to the OIBDA acceleration post-2012 not being reflected in our 2012E-based SOTP."
For more ratings news on Lions Gate click here and for the rating history of Lions Gate click here.
Shares of Lions Gate closed at $6.51 yesterday.
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