LION Stock Forecast & Price Target

Lionsgate Studios has demonstrated robust financial growth, with trailing twelve-month library revenues reaching $1 billion, a significant increase from $892 million in the prior year, highlighting strong demand for premium content. The company's improved television segment is reflected in its contribution to library revenues, which has surged to approximately 30%, alongside a substantial 31% sequential increase in backlog to $1.6 billion, primarily driven by television commitments. Furthermore, the overall revenue generation of $3.2 billion in fiscal year 2025, backed by a stronger television segment, underlines Lionsgate's potential for continued profitability and improved valuation metrics in the competitive media landscape.

Lionsgate Studios Corp reported a Fiscal 2025 OIBDA of $302 million, reflecting a 15% decrease from the previous year largely attributed to challenges within the Motion Picture Segment. The reliance on STARZ accounts for more than a third of the television studio's revenue, and revenue from non-Starz entities has stagnated at levels last seen in 2018. Additionally, the significant dip in theatrical releases, declining home entertainment contributions due to the rise of streaming, and heightened marketing expenses have further diminished the studio's profitability prospects, contributing to a general downturn in studio EBITDA expectations over recent years.