LION Stock Forecast & Price Target

Lionsgate Studios Corp has demonstrated strong financial growth, with trailing twelve-month library revenues reaching $1 billion, an increase from $892 million the previous year, underscoring the rising demand for premium content. The firm’s television segment has markedly improved its contribution to library revenues, now accounting for approximately 30%, and is expected to support EBITDA growth to $336 million, bolstered by international licensing for upcoming films. Additionally, a significant 31% sequential increase in the backlog to $1.6 billion, predominantly from television commitments, reflects robust future profitability, further enhancing the studio's favorable valuation relative to its peers in the media industry.

Lionsgate Studios Corp reported a Fiscal 2025 OIBDA of $302 million, reflecting a 15% decrease from the previous year, primarily driven by losses in the Motion Picture segment. Furthermore, over a third of the TV studio's revenue is dependent on Starz, with TV revenues from non-Starz entities remaining largely stagnant since 2018, indicating limited growth potential. Compounding these issues, the volume of theatrical releases has declined significantly, contributing to disappointing fiscal 2025 results, particularly highlighted by elevated marketing costs and a diminished home entertainment segment due to the rise of streaming services.