Benchmark has raised its price target on Lionsgate Studios Corp to $12.00 from $11.00 and maintained a Buy rating ahead of the company’s earnings report scheduled for this Thursday. The new objective aligns with the highest analyst target on the stock. The shares were trading at $9.27, and available data indicate the stock may be trading above its Fair Value.
The firm cited an improved financial outlook and stronger clarity around the film release calendar as central to its decision to increase the target. Those points come despite Lionsgate not turning a profit over the past twelve months, with a diluted EPS of -$1.08.
Benchmark emphasized the contribution of The Housemaid to Motion Picture profitability. The erotic thriller, starring Sydney Sweeney and Amanda Seyfried, is reported to be approaching $300 million in global box office receipts, with prospects of reaching $400 million. Given the film’s reported production cost of roughly $35 million, the title is expected to be notably profitable.
Looking ahead, a sequel titled The Housemaid’s Secret is projected to reach theaters in calendar 2027, with Sydney Sweeney returning to her role. The franchise potential is further supported by the underlying book series having sold more than 12 million copies, which could enable additional films if the studio pursues them.
Benchmark also said it was especially impressed with the new trailer for Michael, which premiered during Sunday night’s Grammy Awards broadcast.
In its most recent quarter, Lionsgate reported second-quarter 2025 revenue of $475 million and adjusted EBITDA of $14 million, while recording an operating loss of $46 million. The company outlined strategic initiatives focused on expanding its intellectual property portfolio and exploring new revenue streams as part of a longer-term plan to improve financial performance.
Corporate changes have included the appointment of former U.S. Treasury Secretary Steven T. Mnuchin to Lionsgate’s Board of Directors, adding his financial and regulatory experience to the studio’s governance.
Benchmark’s upward adjustments to its outlook for Lionsgate are not new. The firm previously raised its price target to $11.00 from $8.50 while holding a Buy rating following the performance of Now You See Me 3. That film produced $36.8 million domestically and $146 million globally, including $109 million from overseas markets, a pattern that the analyst said could generate overages tied to foreign market presales.
Taken together, these developments illustrate why Benchmark is more confident in Lionsgate’s near-term prospects. At the same time, the studio’s trailing losses and the stock’s valuation relative to fair value remain meaningful considerations for investors as the company reports results and lays out its strategic priorities.
Key points
- Benchmark raised its Lionsgate price target to $12.00 from $11.00 and kept a Buy rating ahead of earnings, citing increased visibility on the release slate and financial outlook.
- The Housemaid is a major contributor to motion picture profitability, approaching $300 million globally against a reported production cost near $35 million; a sequel is planned for calendar 2027.
- Lionsgate reported Q2 2025 revenue of $475 million, adjusted EBITDA of $14 million, and an operating loss of $46 million while announcing strategic initiatives and a board appointment.
Risks and uncertainties
- Lionsgate reported a negative diluted EPS of -$1.08 over the last twelve months, indicating the company has not been profitable in that period - this affects investor returns and capital allocation decisions in the media sector.
- The stock was trading at $9.27 and may be above its Fair Value according to available data, introducing valuation risk for potential buyers in the entertainment and media equities space.
- Box-office performance and franchise development remain uncertain - while recent titles have performed well, future revenue depends on execution of sequels and IP expansion, which impacts motion picture and broader media revenue streams.