LION Stock Forecast & Price Target

Lionsgate Studios Corp has demonstrated significant growth in its library revenues, reaching $1 billion over the trailing twelve months, which reflects an increasing demand for premium content and a substantial contribution from its television studio segment. The company's anticipated improvement in EBITDA to $336 million, bolstered by international licensing for future film releases and a notable 31% increase in backlog primarily driven by television commitments, indicates a robust operational outlook. Additionally, the recovery of the television segment following recent production interruptions underlines Lionsgate's capacity to leverage its diversified content library effectively, positioning it favorably within the media landscape.

Lionsgate Studios Corp has experienced a significant decline in fiscal 2025 OIBDA, which fell 15% year-over-year to $302 million, primarily attributed to underperformance within the Motion Picture Segment. The company's television segment is increasingly reliant on STARZ, with more than one-third of its revenue stemming from this source, while revenues from non-STARZ entities have stagnated since 2018. Furthermore, the decrease in theatrical releases, rising marketing costs, and a notable downturn in Home Entertainment revenues due to the growth of streaming have compounded the challenges facing the company's profitability and future earnings expectations.