The firm said it initiated coverage on the TV and film company based on its view that the studio behind the "Hunger Games" films is an "attractive pure play on the LT value of premium content across platforms."
"Moreover, the company's risk mitigation strategy provides downside protection in an inherently volatile business," Jefferies said in an analyst note.
The firm is estimating that Lions Gate will generate 8% EBITDA growth and 11% EPS growth over the next three years, "well ahead of peers," Jefferies added.
Shares of Lions Gate closed at $32.10 on Tuesday afternoon.
Separately, TheStreet Ratings team rates LIONS GATE ENTERTAINMENT CP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIONS GATE ENTERTAINMENT CP (LGF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, solid stock price performance, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."