Bernstein SocGen Group Downgrades Liberty Global (LBTYA) to Market Perform

Bernstein SocGen Group analyst Ottavio Adorisio downgraded Liberty Global (NASDAQ: LBTYA) from Outperform to Market Perform with a price target of $12.40 (from $24.70).

The analyst comments: "We lower our rating on Liberty Global from Outperform to Market Perform, reflecting decidedly mixed operating trends as described below and capex risk at cable-only operation VodafoneZiggo. Liberty Global trades at a 16.4x 2025e EV/OpFCF AL on a proportionate basis (at $11.7). Our PT of $12.4 (now reflecting the spin-off of the Swiss operation, previous PT $24.7 including the Swiss operation) is derived from a DCF-based SOTP valuation and corresponds to a 17.0x 2025e EV/OpFCF AL. Beyond the removal of the Swiss operation following the spin-out, the reduction to our PT reflects also somewhat lowered operating assumptions in all operations leading to low-single percentage cuts to local-FX forecasts over the forecast horizon. Management is well into a programme of value crystallisation, with the first step — the Swiss spin-off — now delivered in December with the impact unclear, so far. Further steps are being lined up according to management — UK NetCo separation with potential strategic action following that, and the creation of a Benelux entity."

For an analyst ratings summary and ratings history on Liberty Global click here. For more ratings news on Liberty Global click here.

Shares of Liberty Global closed at $11.64 yesterday.

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