(LBTYK) PT Raised to $28 at Pivotal Research

Pivotal Research analyst Jeffrey Wlodarczak raised the price target on (NASDAQ: LBTYK) to $28.00 (from $25.00) while maintaining a Buy rating.

The analyst comments "Our sum of the parts valuation methodology includes a: 1) an 8X (up from 7X) EBITDA multiple on their Swiss assets (to be spun to shareholders by 11/12), 2) 6X on their Belgium assets, 3) a DCF on their UK JV (8% discount rate and 6X ’26 terminal EBITDA multiple), 4) an initial 10% haircut to the value of their Venture portfolio, 5) 6X EBITDA for their Irish assets and their 50% JV in the Netherlands and a 7X multiple of corporate costs. We then subtract net debt and take a further 10% conglomerate discount to arrive at our $28 YE’24 target price. Given the myriad strategic announcements, and management’s indication they are seeing interest from outside parties to invest in certain of their entities upside exists to our target price should Liberty successfully monetize any of their assets. We also highlight that the creation of Liberty Global Benelux which will hold their Telenet Belgium assets and their 50% Netherlands JV with VOD perhaps being a medium/long term deal precursor), upside from their creation of a UK netco to hold their UK cable/fiber assets (possible vehicle to consolidate the UK’s numerous small FTTH players, raise outside capital at favorable valuations and tap into UK wholesale revenue opportunity) and their continued aggressive share repurchase activity. We also highlight the favorable noise from EU/EU related regulators about possibly allowing much needed consolidation in Europe could improve the competitive dynamic in Europe."

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