Wunderlich Securities reiterated a Buy rating on Lions Gate (NYSE: LGF) with a price target of $43.00. Analyst Matthew Harrigan discussed the company's queue.
"Buy-rated Lionsgate (LGF) still appears oversold relative to fundamentals, with the stock remaining near 13% below its 200-day moving average. The price still seemingly discounts post Hunger Games box office share at only 5% and a collapse in pre-overhead film margin to sub 13%. We adhere to our $43 target and regard Lionsgate as the best play on improving digital economics and YA franchise creation," said Harrigan.
"The four Hunger Games movies are an anomaly for any studio, but we are encouraged by Divergent's launch, and potential new franchises such as Vin Diesel in The Last Witch Hunter, and Gods of Egypt, with only nominal production cost exposure on the latter post Aussie tax credits and foreign presales. A further new movie franchise could also be announced within the next few weeks," he added.
COULD THIS BE MORDECAI (which is already in production) OR CHAOS WALKING?