In a report released today, Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on Liberty Global A (LBTYA), with a price target of $35. The company’s shares closed yesterday at $24.27, close to its 52-week low of $23.17.
Wlodarczak said:
“We updated our estimates following in-line 3Q results, which resulted in no change to our $35 YE’19 target price which is based on: 1) the VOD deal closing (mid- 2019), 2) the current market value for their ~60% stake in Belgium’s TNET, 3) a 6.5X ’19 EBITDA multiple for U.K.s Virgin Media asset (2/3 of proportionate EBITDA post VOD deal close), 4) a 6X ’19 EBITDA multiple for LGI’s Swiss and remaining CEE assets, and 5) credit for the NPV of their sizeable NOL’s, a $1B derivative asset and what we view as a conservative $1B equity valuation for their 50% stake in their Netherlands/VOD JV. For 4Q we are forecasting flat core RGU’s (effects of U.K.”
According to TipRanks.com, Wlodarczak is a 4-star analyst with an average return of 5.5% and a 54.0% success rate. Wlodarczak covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Charter Communications, and Sirius XM Holdings Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Liberty Global A with a $35.54 average price target, which is a 46.4% upside from current levels. In a report issued on November 9, Barclays also maintained a Buy rating on the stock with a $36 price target.
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Based on Liberty Global A’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $124 million. In comparison, last year the company had a GAAP net loss of $792 million.
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Liberty Global Plc is an international television and broadband company, which engages in the provision of broadband communications services, including video, broadband Internet and fixed-line telephony services; B2B services; as well as mobile services.
