Recently, the budget for the Divergent Movie had been announced at $40M, but the Hollywood Reporter announces that the budget has been doubled since!
David Miller, an analyst at B. Riley Caris, in a research report lifted his Lionsgate price target from $23.00 to $27.00 in an investors note that questioned why the upcoming release ofDivergent was “flying below radar.”
“We believe neither the market, nor competing brokers, are factoring in the release of Divergent as a hit title, book sales of which, ironically, are ahead of where Hunger Games was as measured by time/trajectory,” Miller wrote in his report.
“We believe this could be a $500mm WW grosser and hence, are improving numbers accordingly,” he added.
Ben Mogil, an analyst at Stifel Nicolaus, raised his Lionsgate price target from $21.00 to $25.00, due in part to a better than expected pay-off on the releases for Ender’s Games and Divergent, Summit/Lionsgate’s adaptation of Veronica Roth’s YA novel.
“Divergent is more similar to Hunger Games in that the company owns the underlying economics (i.e. production) and the budget (at $80mn) is more manageable,” Mogil wrote.
If you want to compare numbers, the first ‘Twilight’ movie’s budget was $37M and the first ‘Hunger Games’ movie was at $78M, which means that ‘Divergent’ will have the highest of the three. Hopefully this increased budget will make the movie that much better. Check out the rest of the article here.