Stocks rise 4% to $19.09
Shares of Lionsgate soared to an all-time Friday on Wall Street bullishness, rising 4% on the same day the benchmark Dow Jones Industrial Average closed above 14,000 for the first time since 2007 amid upbeat economic news.
Shares of Lionsgate gained 77 cents to $19.09 — far above Tuesday’s record high of $18.51.
The gains came in the wake of positive comments by Guy Adami on CNBC’s “Money Talks” after Thursday’s close of the market along with forecasts that the studio’s “Warm Bodies” will lead the domestic box office this weekend. The issue has more doubled in price from when Lionsgate bought Summit a year ago.
Lionsgate stock set eight record highs this year. Matthew Harrigan of Wunderlich Securities bumped up his price target two weeks ago $23 from $19, citing confidence for a sustainable operating cash flow near $200 million annually from the library along with new franchise development with “Divergent,” “Chaos Walking” and “Ender’s Game”; continued leadership in digital media as exemplified at CES; and rapid deleveraging and lower interest expense.
Lionsgate is scheduled to report its quarterly earnings on Feb. 11.