Loop Capital Begins Coverage of Lionsgate Studios (LION) With Hold Rating

On June 4, analysts at Loop Capital initiated coverage on Lionsgate Studios Corp. (NYSE:LION)’s stock with a “Hold” rating and a price objective of $8.00, as reported by The Fly. The firm is not anticipating an acquisition in the near term and believes that Lionsgate Studios Corp. (NYSE:LION) remains fairly valued on current fundamentals.

After the separation from STARZ, Lionsgate Studios Corp. (NYSE:LION) is a well-positioned, pure-play, intellectual property studio. The analysts mentioned that Lionsgate Studios Corp. (NYSE:LION)’s board has put in place a 1-year poison pill, which can be extended to 3 years if shareholders approve, as a defensive measure. Notably, this strategy hints that the company is focused on its internal growth initiatives.

An outsized library performance, a diversified motion picture business model, fiscal discipline, and the company’s capability to offer premium television programming to a changing mix of buyers are expected to act as catalysts.

Moving forward, a strong film and TV slate in fiscal 2026 is expected to help replenish the pipeline, offering the financial underpinning to go into FY 2027 with operating and financial momentum. Lionsgate Studios Corp. (NYSE:LION) expects this momentum, along with an exciting FY 2027 slate, to lead to a strong 2-year adjusted OIBDA growth from FY 2025 through FY 2027.

Lionsgate Studios Corp. (NYSE:LION) happens to be one of the world’s leading standalone, pure-play, publicly-traded content companies.

While we acknowledge the potential of LION to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than LION and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.