Success breeds success on Wall Street. That seems to explain today’s nearly 10% surge in Lionsgate shares to $10.68 in early afternoon trading — a level they haven’t hit since mid-2008. Although the overall market is virtually flat, Lionsgate passed the $10-a-share mark this morning, and that’s a threshold for many big funds to move into a stock. Shares are up more than 28% so far in 2012. Today’s movement follows a generally upbeat response to this month’s $412.5M acquisition of Summit Entertainment, and positive buzz for The Hunger Games, which opens March 23. Stifel Nicholaus analyst Benjamin Mogil cited those two factors yesterday when he upgraded Lionsgate shares to “buy” from “hold” with a new target price of $12.50. Lionsgate execs also have been beating the drum, as Vice Chairman Michael Burns did yesterday in this appearance on CNBC:
By DAVID LIEBERMAN, Executive Editor | Wednesday January 25, 2012 @ 2:18pm ESTTags: Lionsgate, Michael Burns, Summit Entertainment
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