Citi expects Lionsgate Studios sale after Starz split, shares rises

Lionsgate Studios

20/04/2026 12:29

** Citigroup on Sunday downgraded Lionsgate Studios LION.N to "neutral" from "buy," raised price target to $12.60 from $11, implying a 1.2% upside to stock's last close

** Brokerage said expects LION to be sold because it separated from streaming service Starz to create a pure-play studio and collapsed its dual-class share structure at the time

** Noted that management emphasized "strategic optionality" as a key priority in the latest proxy

** LION shares rise 3.1% to $12.84 premarket on Monday

** Raised PT reflects "a 75% likelihood that LION is sold for $13.50. We continue to believe LION is worth $9.00 on a standalone basis" - Citi

** Average rating of 10 analysts is "buy;" their median PT is $12 - data compiled by LSEG

** Up to last close, LION has risen 36.4% so far this year

 (Reporting by Anhata Rooprai in Bengaluru)

 ((Anhata.Rooprai@thomsonreuters.com))