Lionsgate Studios initiated with a Hold at Loop Capital

Loop Capital initiated coverage of Lionsgate Studios (LION) with a Hold rating and $8 price target The firm is not expecting an acquisition in the near term and believes the company is fairly valued on current fundamentals. Post the separation from Starz, Lionsgate is a well positioned, pure-play, intellectual property studio, but management’s focus is to continue growing the business, and the board has instituted a one-year poison pill, that could become a three-year poison pill if approved by shareholders, the analyst tells investors in a research note. Loop sees the company’s fiscal 2026 as a rebuilding year will lower than normal backend profits from the prior year.