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Research Alert: CFRA Keeps Hold Opinion On 'a' Shares Of Lions Gate Entertainment Corp.

· 02/05/2021 06:37

11:35 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $7 to $15, on FY 22 (Mar.) EV/EBITDA of 12.4x, relatively ample vs. peers. We keep FY 21 EPS estimate of $0.97 and cut FY 22's by $0.08 to $0.94. After the Covid-19 disruption, we think the near-term visibility has meaningfully improved, as the company ramps up its TV/film projects to restock its content pipeline. Also, we see some notable tailwinds for the nascent direct-to-consumer platforms, with net adds of 900,000 global streaming subscribers in Dec-Q to reach 14.6M (paced by the continued penetration of Starzplay International), on target for 40M-50M by '25 (including 15M-25M internationally). With $2.05B in total liquidity (cash plus undrawn revolver), we see an ample buffer as the company navigates the Covid-19 disruption. Dec-Q adjusted EPS of $0.21 vs. $0.14, was $0.03 above the consensus estimate. Revenues fell 16% on decline in the motion picture segment (amid theater closings) but adjusted EBITDA margin widened 350 basis points, buoyed by TV licensing.