LION Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Lionsgate Studios Corp (LION) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's positive catalysts, including strong analyst confidence, upcoming film releases, and growth in library revenue, outweigh the negative technical signals and recent financial challenges.
The MACD is negatively expanding (-0.139), indicating bearish momentum. RSI is neutral at 20.393, and moving averages are converging, showing no clear trend. The stock is trading near its support level (S1: 8.219, S2: 7.813) with a pre-market price of 8.07, suggesting limited downside risk.
Analysts have raised price targets, with the highest at $12, citing strong film performance and industry demand for pure-play studios.
Record library revenue of $1.05 billion, up 10% YoY.
Upcoming catalysts like the Michael Jackson biopic trailer debuting at the Super Bowl and key releases like 'The Housemaid' expected to drive fiscal '27 growth.
Addition of Steven Mnuchin to the board and plans to convert to a single class of stock to enhance shareholder value.
Recent financials show a drop in net income (-115.53% YoY) and EPS (-114.29% YoY).
Gross margin declined to 35.37%, down 4.61% YoY.
Technical indicators suggest bearish momentum with no immediate buy signal.
In Q3 2025, revenue increased by 3.24% YoY to $713.8 million. However, net income dropped significantly by -115.53% YoY to $6.4 million, and EPS fell by -114.29% YoY to $0.02. Gross margin also declined to 35.37%, down 4.61% YoY. Despite these challenges, the company achieved record library revenue of $1.05 billion over the trailing 12 months, marking a 10% YoY growth.
Analysts are bullish, with recent upgrades in price targets (Morgan Stanley: $11, Benchmark: $12, Wells Fargo: $12). They cite strong film performance, improving fundamentals, and industry M&A potential as key drivers for their positive outlook.
