In a report released today, Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on GCI Liberty Inc (GLIBA), with a price target of $65. The company’s shares opened today at $53.94, close to its 52-week high of $55.47.
Wlodarczak commented:
“We believe it is not a question of if but when a CHTR for LBRDK/GLIBA RMT happens. We assume eventually CHTR does a deal at NAV and a 5% discount to what Liberty paid for GCI (to account for some of the issues GCI has encountered around government reimbursement). We expect a deal will be similar in fashion to the ’09 all stock RMT merger between DIRECTV (T, N/R) and Liberty Entertainment. The ultimate CHTR RMT should drive GLIBA’s current (-14%) discount to NAV to near 0% (again assuming CHTR [which has obvious healthy synergies mainly in the form of programming] purchases the GCI asset for a 5% discount to what GLIBA paid).”
According to TipRanks.com, Wlodarczak is a 4-star analyst with an average return of 8.2% and a 60.3% 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 GCI Liberty Inc with a $67 average price target, representing a 24.2% upside. In a report released yesterday, B.Riley FBR also maintained a Buy rating on the stock with a $69 price target.
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Based on GCI Liberty Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $317 million. In comparison, last year the company had a net profit of $48.5 million.
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GCI Liberty, Inc. is a holding company. It is a communications provider in Alaska. The company provides a full range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions. It operates through the GCI brand name.
