LION Stock Forecast & Price Target

Lionsgate Studios Corp has reported substantial growth in its library revenues, reaching $1 billion, which highlights the increasing demand for premium content and enhances the long-term value of its portfolio. The company's Television Production segment has shown significant progress, contributing to an improved revenue mix and profitability, with a notable 31% sequential increase in backlog largely due to television commitments. Furthermore, the anticipated improvement in EBITDA to $336 million, driven by international licensing and a recovery in the Television segment following recent production normalizations, indicates a promising financial outlook for the studio.

Lionsgate Studios Corp reported a Fiscal 2025 OIBDA of $302 million, reflecting a 15% decline from the previous year, primarily driven by underperformance in the Motion Picture Segment. The company's dependence on the STARZ platform, which accounted for more than a third of TV studio revenues, coupled with stagnation in non-Starz TV revenues since 2018, indicates limited growth potential. Additionally, the substantial drop in theatrical releases and rising marketing costs have negatively impacted profitability, as evidenced by disappointing fiscal results linked to poor performance in the second quarter.