Liberty 77 Capital Boosts Stake in Lionsgate Studios, Analysts Lower Price Targets

Liberty 77 Capital has purchased 7.4 million shares of Lionsgate Studios, valued at $48.8 million, boosting its stake in the company. Analysts from Citi, Morgan Stanley, and Seaport Research have lowered their price targets for Lionsgate, citing various reasons. Despite these adjustments, Lionsgate's recent earnings call highlighted robust financial performance and record-breaking library segment results. Spark, TipRanks' AI Analyst, rates Lionsgate Studios as Neutral, citing financial and operational challenges and ongoing losses.

Liberty 77 Capital has recently acquired an additional 7.4 million shares of Lionsgate Studios, valued at $48.8 million, significantly increasing its ownership stake in the company. This move comes after Liberty Strategic Capital, the investment arm of former Treasury Secretary Steve Mnuchin, initially acquired 3.3 million shares in May 2025, giving it control over approximately 12.60% of Lionsgate Studios' common shares [1].

The acquisition, which was made for investment purposes, brings Liberty Strategic Capital's total holding to 35.988,636 shares, representing about 12.60% of Lionsgate Studios' issued and outstanding common shares. This strategic investment is part of Liberty Strategic Capital's ongoing review of its investment in Lionsgate Studios, with the potential to increase or decrease its position based on the company's performance and market conditions [1].

Despite the positive news surrounding Liberty 77 Capital's increased stake, several analysts have recently lowered their price targets for Lionsgate Studios. Citigroup, Morgan Stanley, and Seaport Research have all adjusted their price targets downward, citing various reasons. Citigroup, for instance, reduced its price target from $13.00 to $10.00, while Morgan Stanley cut its target from $8.50 to $8.00 [2].

However, Lionsgate Studios' recent earnings call highlighted robust financial performance and record-breaking results in its library segment. The company reported earnings per share of $0.17 for the quarter, though this was below the consensus estimate of $0.50. Lionsgate Studios also reported revenue of $1.07 billion, which was slightly below analyst expectations of $1.19 billion [3].

Spark, an AI-powered analyst from TipRanks, rates Lionsgate Studios as Neutral, citing ongoing financial and operational challenges, as well as the company's recent losses. Despite these challenges, the company's strong library segment and potential for growth in streaming services and content production remain key factors to watch [3].

In summary, while Liberty 77 Capital's increased stake in Lionsgate Studios signals confidence in the company's future prospects, recent analyst price target adjustments and ongoing operational challenges highlight the need for continued vigilance among investors.

References:
[1] https://finance.yahoo.com/news/funds-managed-liberty-strategic-capital-232900679.html
[2] https://variety.com/2025/film/news/steve-mnuchin-acquires-lionsgate-studios-shares-stake-1236414039/
[3] https://www.marketbeat.com/instant-alerts/lionsgate-entertainment-nyselion-price-target-cut-to-1000-by-analysts-at-citigroup-2025-05-29/