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'Blair Witch' boosts Lions Gate shares as analyst doubles box office estimates

Shares of Lions Gate Entertainment gained more than 6 percent on Friday as the company debuted its reboot of "Blair Witch."

After unveiling the trailer at Comic-Con, the film saw a boost in consumer interest above expectations, Pacific Crest Securities said in a research note published Friday. The firm doubled its domestic box office expectation for the film to $60 million.

Pacific Crest, which has an "overweight" rating on Lions Gate, said it believes "the film slate is showing some momentum in profitability that should at least meet investor expectations." It's a spot of good news for a company which has had "a string of large, poorly performing titles," the firm said.

Peter (Brandon Scott, left), Ashley (Corbin Reid, center) and James (James Allen McCune, right) in BLAIR WITCH.
Chris Helcermanas–Benge | Lionsgate
Peter (Brandon Scott, left), Ashley (Corbin Reid, center) and James (James Allen McCune, right) in BLAIR WITCH.

Lions Gate remains "relatively well positioned within the traditional media sector" and is one of the least expensive companies on out year cash flow metrics, Pacific Crest said.

Even with Friday's gains, Lions Gate shares are down 33 percent so far this year.

Disclosure: Pacific Crest Securities is part of KeyBanc Capital Markets, which does and seeks to do business with companies covered in its research reports.