LION Stock Forecast & Price Target

Lionsgate Studios has demonstrated robust growth in its financial performance, evidenced by trailing twelve-month library revenues reaching $1 billion, an increase from $892 million in the previous year, underscoring the strong demand for premium content. The company's efforts to expand its Television Production segment have contributed significantly to its library value, with this segment now accounting for approximately 30% of library revenues, up from 15% a decade ago. Additionally, the notable 31% sequential increase in backlog to $1.6 billion in 2QF26, primarily from television commitments, highlights a promising pipeline for future revenue generation.

Lionsgate Studios Corp reported a significant decline in OIBDA, falling 15% year-over-year to $302 million, primarily impacted by underperformance in the Motion Picture Segment. Revenues from its Television Production segment have stagnated, with over one-third derived from the Starz platform, while contributions from non-Starz entities have remained flat since 2018, indicating limited growth and market penetration. Additionally, the increased marketing costs and diminished theatrical releases have adversely impacted profitability, compounded by a decline in the Home Entertainment category due to the rise of streaming platforms, leading to disappointing fiscal 2025 results.