Lionsgate Studios Stock (NYSE:LION) Plunges to New Lows: Is There a Silver Screen Lining?

Lionsgate Studios stock price (NYSE:LION) plunged to a new low of $5.58, as 2025 continues to display a bearish pattern for holders. With the stock down 14% over the past month and 29.5% since the start of this year, there have been few levels where buyers seem prepared to step in en masse.

This sustained downward pressure raises serious questions about the studio's near-term prospects, even as analysts offer glimmers of hope for a potential rebound.

The stock's woes are not simply a matter of market volatility. Several prominent financial analysts have revised their price targets for LION downward, signaling concerns about the company's ability to meet expectations. Rosenblatt Securities, for example, lowered its target from $13.00 to $9.00, while Citigroup reduced its target from $13.00 to $10.00. Morgan Stanley also trimmed its target to $8 from $8.50, citing challenges in film release schedules and a difficult television production environment.

Whilst the targets have moved to the downside, when taking in context to the current trading price of $5.59, there remains some significant upside perceived, even in the context of a declining outlook. The consensus price target of $9.54 would reflect a very healthy return, should the company be able to execute to the levels expected by the street.

Lionsgate's recent financial results paint a mixed picture. While the company has made strides in streamlining its operations, recent earnings reports have revealed vulnerabilities

A significant strategic move by Lionsgate has been the separation of its studio and STARZ businesses into two independent publicly traded entities. This restructuring is intended to allow each segment to focus on its core operations and unlock greater value. However, such transitions inevitably introduce uncertainties and transitional challenges that can weigh on investor confidence. While the long-term benefits of this strategic shift may be substantial, the short-term impact has contributed to the current stock price weakness.

Despite the prevailing gloom, there are some potential bright spots. Notably, Liberty 77 Capital, affiliated with former Treasury Secretary Steven Mnuchin, made a substantial investment in Lionsgate, purchasing approximately 8.7 million shares for $54.79 million in May and June.