Lionsgate (LGF) Announces Stake Purchase by Discovery Communications and Liberty Global; Stifel Reiterates Buy

Stifel reiterated a Buy rating and $42.00 price target on Lions Gate (NYSE: LGF) following the company's 2Q earnings report. The highlight of the Lions Gate call was the announcement that Discovery Communications and Liberty Global had both taken a 3.4% stake in the company with MHR Funds as the seller.

Analyst Benjamin Mogil commented, "Following Lions Gate's earnings call, we remain Buy rated as we view the purchase of a Lions Gate stake by Discovery Communications and Liberty Global as positive and re-inforcing a key theme of backwards vertical integration. The company did refine downward guidance for F2015-2017, but we view the guide down in the context of the weak quarter and a strengthening dollar. We remain Buy rated."

For an analyst ratings summary and ratings history on Lions Gate click here. For more ratings news on Lions Gate click here.

Shares of Lions Gate closed at $38.28 yesterday.

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