Lionsgate (LION) Jumps 7% as Film Breaks Box Office Record, Analyst Hikes PT

Lionsgate Studios Corp. (NYSE:LION) is one of the 10 Stocks Racking Up Monster Gains.

Lionsgate rallied for a third straight day on Monday, climbing 7.09 percent to close at $12.24, after its new film hit box-office records, while investors digested an investment firm’s 25-percent price target upgrade for its stock.

According to a report by NBC, Lionsgate Studios Corp.’s (NYSE:LION) new film, Michael—which depicts the life of Michael Jackson—generated $217 million in global sales in its first weekend of release. Of the total, $97 million was sold locally, while the remaining $120.4 million was generated internationally.

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The figures exceeded expectations of only $50 million to $70 million prior to the release.

Michael was also Lionsgate Studios Corp.’s (NYSE:LION) top bow since the pandemic, exceeding The Hunger Games: Mockingjay – Part 2, which raked in $102.7 million.

Meanwhile, investors took heart from Benchmark’s price target upgrade for Lionsgate Studios Corp. (NYSE:LION), to $15 from $12 previously, while maintaining a “buy” recommendation. The figure marked a 22.5 percent upside potential from its latest closing price.

In other news, Lionsgate Studios Corp. (NYSE:LION) earlier this month updated its employment contract with its CEO, Jon Feltheimer, under which, he was given an option to buy 4.5 million shares at $11.07 apiece, and a chance to receive 666,667 restricted stock units upon the achievement of certain conditions, including hitting certain price targets within five years, and if he stays in the company for five years.

The agreement forms part of the company’s broader efforts to compensate Feltheimer and support his strategy for driving Lionsgate’s growth.

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