Jefferies Cuts Price Target After Lionsgate (LGF) Reports Disappointing 3Q Results
Jefferies maintained a Buy rating on Lionsgate (NYSE: LGF), and cut the price target to $30.00 (from $44.00), following the company's 3Q earnings report. LGF reported disappointing F3Q results, but did not lower the 3-yr EBITDA guidance. However, the company did acknowledge that they were currently tracking below the range.
Analyst John Janedis commented, "LGF reported disappointing F3Q results, but did not lower the 3-yr guide (EBITDA $1.1-$1.2B) - acknowledged tracking below plan. Mgmt. may have been better served to reset the bar to $1.0B-$1.1B, but given the reaction in the stock, our hope is that it won't serve as an overhang. At 8x our F17E EBITDA (JEFe: $410M), we see favorable risk/reward for a pure play in the content space with secular tailwinds."
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Shares of Lions Gate closed at $18.53 yesterday.