LION Stock Forecast & Price Target

Lionsgate Studios Corp has demonstrated significant financial growth with trailing twelve-month library revenues reaching $1 billion, a substantial increase from $892 million the previous year, highlighting strong demand for premium content. The company's television production segment has notably enhanced its contribution to overall library revenues, increasing from 15% a decade ago to around 30%, thus reinforcing the positive outlook for future earnings, particularly with expected EBITDA improvement to $336 million. Additionally, the robust 31% sequential increase in backlog to $1.6 billion, primarily driven by television commitments, along with a total revenue of $3.2 billion in fiscal year 2025, underscores a strong recovery and growth trajectory following the resolution of industry disruptions.

Lionsgate Studios experienced a significant year-over-year decline in fiscal 2025 OIBDA, falling 15% to $302 million, primarily adversely affected by the performance of its Motion Picture Segment. The studio's television revenues, largely reliant on its STARZ platform, have shown stagnation, remaining effectively flat compared to 2018, contrasting with its previous growth trajectory. Additionally, escalating marketing costs and disappointing box office results, driven by a reduced volume of theatrical releases, contribute to a deteriorating outlook for the studio's profitability and overall revenue generation.