LION Stock Forecast & Price Target

Lionsgate Studios is projected to experience significant revenue growth in its Motion Picture segment, with an anticipated 11.7% two-year compound annual growth rate (CAGR) leading to revenues of $1,891 million. For fiscal year 2028, total sales are estimated to reach $3,536 million, reflecting a 7.6% increase, underpinned by a more stable film trajectory and international licensing opportunities. Additionally, the studio's historical higher valuation compared to peers and increased profitability in the Television segment, driven by successful digital home entertainment initiatives, contribute to a positive financial outlook.

Lionsgate Studios Corp is projected to experience a decline in Adjusted OIBDA by 11.8%, reaching $266 million in the current fiscal year, reflecting ongoing challenges within the Motion Picture segment. Additionally, the company's top-line revenue is anticipated to fall by 7.3% to $2,962 million in fiscal 2026, leading to concerns about overall financial health despite a forecasted rebound in subsequent years. Furthermore, more than one-third of the studio's revenue derives from the STARZ platform, yet revenue from non-STARZ television entities has remained stagnant since 2018, indicating lingering profitability issues within the broader television production business.