Lionsgate (LGF) Announces Stake Purchase by Discovery Communications and Liberty Global; Stifel Reiterates Buy
Stifel reiterated a Buy rating and $42.00 price target on Lions Gate (NYSE: LGF) following the company's 2Q earnings report. The highlight of the Lions Gate call was the announcement that Discovery Communications and Liberty Global had both taken a 3.4% stake in the company with MHR Funds as the seller.
Analyst Benjamin Mogil commented, "Following Lions Gate's earnings call, we remain Buy rated as we view the purchase of a Lions Gate stake by Discovery Communications and Liberty Global as positive and re-inforcing a key theme of backwards vertical integration. The company did refine downward guidance for F2015-2017, but we view the guide down in the context of the weak quarter and a strengthening dollar. We remain Buy rated."
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Shares of Lions Gate closed at $38.28 yesterday.