Stifel says that Lionsgate's current equity price "somewhat overlooks" the evolution of the company's business model since the first "Hunger Games" movie was released. The firm notes that the company's EPS has risen since then, while its products have become more diversified. Stifel expects the company's merger with Starz (STRZA) to be delayed as a result of the sharp decline in its share price, but it believes that Lionsgate's stock is undervalued at current levels. Stifel cut its price target on the shares to $25 from $35 but keeps a Buy rating on the stock.