Updating Estimates and Price Target

Research evidence excerpt

Updating Estimates and Price Target

TD Cowen Lionsgate Studios Corp.

Global Research May 22, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

Following the separation of LGF into LION and STRZ (which was the catalyst for our Buy (1) - Key theatrical launches

rating on LGF), Lionsgate Studios represents a unique asset in the media landscape as a scaled,

independent content producer without the drag of linear networks or a money-losing streaming

service. While the company’s high-quality IP portfolio and production capabilities have obvious

strategic value to potential acquirers, we believe the most likely buyers are looking for ways to

spend less rather than more on content. Given the challenging economics for non-franchise

films in the current theatrical environment and the ongoing shift in industry economics, we have

a hard time coming up with a compelling Buy thesis on the name at present.

Base Case Assumptions Upside Scenario Downside Scenario

- No new major breakout franchises - One or more films significantly outperform - One or more films significantly

in FY27 underperform in FY27

- Market for TV remains steady

- Another A-tier tentpole franchise like - Existing franchises falter

Hunger Games emerges

- Company engages in value-destructive

- Market for TV content accelerates M&A

- Company is acquired - Theatrical window continues to compress

Price Performance Company Description

Lionsgate is one of the world's leading standalone, pure play, publicly traded content

$14

companies. It brings together diversified motion picture and television production and

distribution businesses, a world-class portfolio of valuable brands and franchises, a a talent

12 management and production powerhouse and a more than 20,000-title film and television