9:30 EDT - Up 36% in 2013 and nearly quadruple the level of 2 years ago, B Riley isn't ready to cash in its chips on Lions Gate (LGF) as it hikes its price target on the movie studio to a Street-high $27 from $23. "We believe neither the market, nor competing brokers, are factoring in the release of 'Divergent' as a hit title--book sales of which, ironically, are ahead of where 'Hunger Games' was" at a similar time. The movie based on themes similar to 'Hunger Games,' is due for release next March while 'Hunger Games' grossed $687M globally last year. B Riley thinks 'Divergent' could do $500M. LGF closed Tuesday at $22.28.
The way the price action is going, you would think that this upgrade was a signal to load up! Is news around the corner? Why would B Riley upgrade based on Divergent which is a year away...they had plenty of time to upgrade based on this after the next earnings report. Interesting is all I will say.