×
You will be redirected back to your article in seconds

‘Catching Fire’ Boosts Lionsgate Stock To Records

'Catching Fire' worldwide gross forecast at $900 million

Wall Street’s bullishness over prospects for Jennifer Lawrence’s “The Hunger Games: Catching Fire” has helped boost Lionsgate stock to a record high.

One analyst predicted that the worldwide box office for the second “Hunger Games” film will hit $900 million.

The issue gained 2.5% on Tuesday, rising 74 cents to $29.93, then rose another 36cents to $30.29 in trading Wednesday after reaching $30.88 earlier in the session. The previous high close came on June 3, when Lionsgate signed CEO Jon Feltheimer to a five-year extension.

SEE ALSO: Lionsgate Extends CEO Jon Feltheimer’s Deal to 2018

Piper Jaffray said Tuesday it recommended the stock as its favorite mid-cap name in 2013 and singled out “Catching Fire,” due out Nov. 22.

“While the second ‘Hunger Games’ film is an obvious catalyst, we see a number of other interesting initiatives across the company that will drive value,” analyst James Marsh wrote. “The film release slate is looking deeper (‘Red 2,’ ‘Ender’s Game,’ ‘Divergent’), we like the odds of a ‘Twilight’ extension, and international distribution deal economics are improving. In addition, we think Television has plenty of momentum following the success of ‘Anger Management’ and ‘Nashville.'”

Piper Jaffray reiterated its overweight rating and $32 price target.

David Miller of BRiley & Co. issued a similarly bullish report and repeated his $34 target, predicting that “Catching Fire” will gross $900 million worldwide. That’s 22% above the $691 million gross for “The Hunger Games,” will Miller noting that the popularity of the “Hunger Games” book trilogy has “exploded” overseas since last year’s release of the first film.

Miller also said he expects Lionsgate is set to dramatically increase its TV Production output by as much as 15% in the 2015 fiscal year.

Wall Street has been a strong supporter of Lionsgate, with the stock having quadrupled in less than two years due to success in young-adult franchises such as “Twilight” and “The Hunger Games,” and a growing TV operation with such shows as shows “Mad Men” and “Nurse Jackie.” It finished fifth among the majors in 2012 with $1.24 billion in domestic box office and currently has 28 TV shows on 20 networks.

The final two “Hunger Games” films will be released in November, 2014 and November, 2015.

The stock was trading in the $7 range in August 2011 when Feltheimer and vice chair Michael Burns worked out a deal to cash out Carl Icahn’s 33% stake, ending three years of battling with the combative billionaire.

Popular on Variety

More TV

  • Reed Hastings seen on day one

    Reed Hastings on the Streamer Wars: 'It's a Whole New World Starting in November'

    After dominating the subscription streaming scene for so long, Netflix is girding for a new phase in the SVOD wars with the entry of more deep-pocketed players like Disney and Apple, CEO Reed Hastings said Friday. “While we’ve been competing with many people in the last decade, it’s a whole new world starting in November…between [...]

  • BBC ITV BritBox Streaming

    Viacom's Channel 5 and Comedy Central Join BritBox Ahead of Its U.K. Launch

    Viacom-owned Channel 5 and Comedy Central have joined BritBox, the “best-of-British” subscription streaming service created by the BBC and ITV. The platform, already available in North America, is due to launch on home turf in Britain by year’s end. Under the deal with Viacom, shows from the U.K.’s Channel 5 can appear on BritBox following [...]

  • The-Head

    Behind the Scenes With Mediapro’s Antarctic Thriller Series 'The Head'

    On Sept. 13, the cast and crew of Mediapro’s upcoming dramatic thriller “The Head” gathered at a swanky Santa Cruz de Tenerife hotel to kick off promotional duties for this English-language series, which will wrap shooting later this month. It was day 50 of production, and the cast had been working late, rushing to get [...]

  • The Plague Season 2 Spanish TV

    Telefonica, Atresmedia to Create Content Factory Behemoth

    SAN SEBASTIAN  — In a game-changing move for Spanish-language production Telefonica, Europe’s third biggest telco, and Atresmedia, the original co-creators of “La Casa de Papel,” are uniting to create a new joint contents production giant. Aimed at gaining more scale and uniting talent relations – writers, directors and producers – the 50/50 joint venture will [...]

  • KKR-Backed German Media Conglomerate Finally Has

    KKR-Backed German Media Conglomerate Finally Has a Name: Leonine

    The KKR-backed German media company formed through the merger of Tele München Group, Universum Film, i&u TV, and Wiedemann & Berg Film finally has a name: Leonine. The company revealed its moniker Friday, saying that “Leonine” met its criteria of being associated with its home region of Bavaria and Munich, in southern Germany, and of [...]

  • PERFECT LIFE

    San Sebastian: Leticia Dolera on Canneseries Winner ‘Perfect Life’

    SAN SEBASTIAN —  “La Casa de Papel” (“Money Heist”) may be the most seen of Spanish series this year. Leticia Dolera’s still-to-bow “Perfect Life,” however, is the most laureled, sweeping at April’s 2nd Canneseries TV festival both best series and best special performance for its female leads, Dolera herself, Celia Freijeiro and Aixa Villagrán, from [...]

  • Screen writer Beau WillimonMary Queen of

    Beau Willimon Re-Elected as President of Writers Guild of America East

    Beau Willimon, the playwright and showrunner who launched Netflix’s “House of Cards,” has been re-elected without opposition to a two-year term as president of the Writers Guild of America East. Willimon also ran unopposed in 2017 to succeed Michael Winship. Kathy McGee was elected to the vice president slot over Phil Pilato. Secretary-treasurer Bob Schneider [...]

More From Our Brands

Access exclusive content