On Friday, TD Cowen maintained a Buy rating on shares of Lionsgate (NYSE:LGF-A) with an unchanged price target of $12.00. The firm's stance followed the media company's fourth-quarter fiscal year 2024 results, which surpassed both TD Cowen's and the consensus estimates, largely due to a robust Studio performance.
The company's management confirmed their financial guidance for fiscal year 2025 and announced intentions to finalize the split of the Starz and studio businesses by the end of the 2024 calendar year. The division aims to establish Starz as a separate entity, although its market valuation remains a point of contention.
According to TD Cowen, the market's current valuation of Starz is not reflective of its true worth. Despite this, the firm remains confident in Lionsgate's prospects and has reiterated its Buy recommendation for the company's stock. The financial analyst believes that the market is undervaluing Starz and that this misjudgment does not affect the positive outlook on Lionsgate's shares.
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