LION Stock Forecast & Price Target

Lionsgate Studios Corp has demonstrated a robust growth trajectory, evidenced by a 12-month library revenue increase to $1 billion, bolstered by strong demand for premium content. Projections indicate Motion Picture revenues are expected to grow at an impressive compound annual growth rate (CAGR) of 11.7%, reaching $1,891 million, while overall sales are anticipated to rise by 7.6% to $3,536 million by fiscal 2028. This momentum, alongside improvements in EBITDA and a significant uptick in television profitability driven by successful digital releases, underscores the company’s strengthened financial position and potential for enhanced valuation compared to peers in the media industry.

Lionsgate Studios Corp is facing a negative outlook primarily due to a projected decline in Adjusted OIBDA, which is expected to decrease by 11.8% to $266 million this fiscal year, alongside an overall top-line revenue drop of 7.3% to $2,962 million. The Motion Picture Segment has exhibited significant weaknesses, culminating in a 15% year-over-year decrease in OIBDA for fiscal 2025, influenced by a reduction in theatrical releases and increased marketing costs that have pressured profitability. Furthermore, nearly 35% of the TV studio's revenue is reliant on the STARZ platform, while non-STARZ TV revenue growth has stagnated, remaining flat since 2018, indicating challenges in diversifying revenue streams outside of the subscription service.