Deutsche Bank Raises Price Target on Liberty Media (LMCA)
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Price: $30.10 --0%
Rating Summary:
11 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 54
Rating Summary:
11 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 54
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Deutsche Bank maintained a Buy on Liberty Media (NASDAQ: LMCA) and raised its price target to $124.00 (from $118.00).
"Liberty Media is now a simple entity (no trackers, no sister companies, no hedges or collars, no large dfd tax liability, FCF positive), and is set to become even simpler with the announced spinoff of Starz, LLC by YE 2012 and taking control of SIRI post-FCC approval," said analyst Doug Mitchelson.
"Key for shares now is: (1) the valuation at which Starz will trade postseparation – we expect 9x ‘13E FCF for the 2.5x debt/EBITDA levered company; (2) how aggressive a SIRI share repurchase mgmt will institute post taking control of SIRI, and to what extent LMCA will participate; (3) SIRI’s growth momentum; and (4) what mgmt will do with its liquidity at Liberty post Starz spin / SIRI control," said Mitchelson.
For investors that retain Starz shares, Mitchelson points out, based on management indications, it could be sold in 6 months, postseparation.
For an analyst ratings summary and ratings history on Liberty Media click here. For more ratings news on Liberty Media click here.
Shares of Liberty Media closed at $106.19 yesterday.
"Liberty Media is now a simple entity (no trackers, no sister companies, no hedges or collars, no large dfd tax liability, FCF positive), and is set to become even simpler with the announced spinoff of Starz, LLC by YE 2012 and taking control of SIRI post-FCC approval," said analyst Doug Mitchelson.
"Key for shares now is: (1) the valuation at which Starz will trade postseparation – we expect 9x ‘13E FCF for the 2.5x debt/EBITDA levered company; (2) how aggressive a SIRI share repurchase mgmt will institute post taking control of SIRI, and to what extent LMCA will participate; (3) SIRI’s growth momentum; and (4) what mgmt will do with its liquidity at Liberty post Starz spin / SIRI control," said Mitchelson.
For investors that retain Starz shares, Mitchelson points out, based on management indications, it could be sold in 6 months, postseparation.
For an analyst ratings summary and ratings history on Liberty Media click here. For more ratings news on Liberty Media click here.
Shares of Liberty Media closed at $106.19 yesterday.
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