Lionsgate Studios initiated with a Hold at TD Cowen

TD Cowen initiated coverage of Lionsgate Studios (LION) with a Hold rating and $8 price target Lionsgate is a pure-play content asset with “scarcity value,” but also “somewhat limited growth prospects,” the analyst tells investors in a research note. While TD thinks the company will eventually be acquired, with the industry currently in the mode of trying to do more with less, it does not see it as a likely outcome in the next 12 months. Given the “challenging” economics for non-franchise films in the current theatrical environment, TD has time “coming up with a compelling buy thesis on the name at present.”