Wunderlich Maintains Buy on Lionsgate

Wunderlich is out with its report today on Lionsgate (NYSE: LGF), maintaining Buy.

In a note to clients, Wunderlich writes, "We are constructive on Buy-rated Lionsgate moving into Tuesday's post-close earnings, albeit with cognizance of its noisy quarterly results and the continued overhang from the 34% Carl Icahn ownership position—at least until a buyer is found for the latter's position following LGF legal wins in New York and Vancouver. Lionsgate is a standout in film library performance and in digital conversion ratios and streaming, TV production with hits such as Mad Men, and in agile investments such as Break and TV Guide Network. Our sensitivity model for library OCF growth and sustained new production margin is attached. Estimated PMV could soon be 2x+ the current stock price."

Wunderlich maintains an $8.50 PT.

Shares of LGF closed Thursday at $5.98, up 1.87% from Wednesday's close.