"Not a Bad Safe Haven": Analyst Advises Buying Shares of the Creator of 'The Hunger Games'

Shares of the creator of “The Hunger Games” — Hollywood film studio Lionsgate Studios — are a “decent safe haven” in a volatile stock market, especially given the “obvious interest” in acquiring it, according to Matthew Harrigan, an analyst at financial firm StoneX. He advises investors to buy the company’s stock and sees it as having 40% growth potential.

Matthew Harrigan, an analyst at the financial firm StoneX, called Lionsgate stock “a decent safe haven” amid the volatile stock market and the broader economic situation, Barron’s noted. In a new investment report, the analyst reaffirmed his buy recommendation.

One of Harrigan’s arguments in favor of the stock was Legendary Entertainment’s interest in acquiring Lionsgate; Legendary is the producer of the “Dune” and “Minecraft” film franchises. Legendary resumed negotiations to acquire Lionsgate that began last year and submitted a takeover bid, Bloomberg reported in October, citing its sources.

Bloomberg later reported that Lionsgate is in discussions with potential investors regarding a possible bond offering secured by its library of movies and TV shows. Mitsubishi UFJ Financial Group is facilitating the preliminary talks. According to Harrigan, such a deal could facilitate financing for a potential acquisition.

Among other positive developments for Lionsgate, Harrigan cited the upcoming November premiere of *The Hunger Games: Mockingjay—Part 1*. This is the sixth installment in the film series based on the novels by Suzanne Collins.

StoneX has set a price target of $17 for the company's stock. This is 40% higher than its closing price on November 2 ($12.14). The target is based on “Lionsgate’s impressive portfolio of film projects,” the analyst explains. In particular, he highlights the sequel to Mel Gibson’s *The Passion of the Christ*—*The Resurrection of Christ*—whose two parts are set to be released in 2027 and 2028, respectively.

Harrigan also notes the potential to monetize Lionsgate’s library and roughly double the output of new TV series and shows. In addition, last week Lionsgate and Steven Paul’s SP Media announced a new joint venture involving “significant” capital investments by SP Media in new projects, the analyst notes.

In May 2025, the studio businesses of Lionsgate and Starz became two separate publicly traded companies. Following the split, Lionsgate was viewed as a potential acquisition target by several companies, including Netflix, according to Bloomberg.

For the quarter ended June 30, the Hollywood studio's revenue rose nearly 48% year-over-year to $776.6 million. Corporate debt stood at $1.94 billion at the end of the quarter.

Since May 8, 2025—the date Lionsgate became an independent company—its stock price has risen by approximately 56%.

Wall Street, on the whole, is bullish on the company’s prospects: its stock has ten “buy” recommendations, four “hold” ratings, and only one “sell” rating. The average target price of $15.17 implies 25% upside potential relative to the last closing price.