NEW YORK (TheStreet) -- Shares of Lions Gate Entertainment (LGF) were jumping 10.10% to $20.93 on heavy trading volume mid-afternoon Friday as the studio late yesterday reported stronger-than-expected results for the 2017 fiscal second quarter.
RBC Capital Markets subsequently raised its rating on the stock to "outperform" from "sector perform" and hiked its price target to $31 from $24.
The firm believes the market has not adequately valued the cash synergies expected to be produced from its $4.4 billion merger with premium cable network Starz (STRZA), according to TheFly.
Lions Gate is "significantly undervalued," RBC added.
Additionally, Pacific Crest said they recommend owning Lions Gate stock, adding that the company's second quarter results were solid.
The firm has an "overweight" rating and $24 price target on shares of the Santa Monica, CA-based company.
Lions Gate is "relatively well" positioned and remains the least expensive name compared to other peers in the media sector, Pacific Crest added.
Jefferies analysts said the company's "diversified" TV business continues to benefit from secular tailwinds. The unit should see EBITDA growth over the next several years, the firm noted.
The firm reiterated its "buy" rating and $26 price target.
More than 4.14 million of the company's shares changed hands so far today vs. its average 30-day volume of 2.43 million shares.
Separately, 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 articles's author.
The team rates Lions Gate Entertainment as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, the team also finds weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: LGF