NEW YORK (TheStreet) -- Lions Gate Entertainment (LGF) shares are rallying 1.58% to $21.59 on Friday morning as Pacific Crest Securities continues to be bullish on the company's future following its strong 2016 fourth quarter results.
On Wednesday after the market close, the Santa Monica, CA-based film maker reported earnings of 7 cents a share, better than analysts' expectations of a loss of a penny.
Revenue of $791 million topped projections of $741 million.
Given these robust results, Pacific Crest recommends buying the stock, reiterating its "overweight" rating with a $27 price target.
"Growing content value and support from library FCF, combined with TV production momentum driven by the shift to on demand, support a favorable risk/reward for LGF, in our view," analysts said.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: LGF