Citadel Securities Starts Liberty Global (LBTYA) at Add, Give $3.2 Billion Back To Share Holders Over Next 2 Years
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Price: $10.47 -0.19%
Rating Summary:
10 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Citadel Securities initiates coverage on shares of Liberty Global (NASDAQ: LBTYA) with an Add rating and $50 price target.
The company is the largest cable operator outside the U.S. and has 20 million customer relationships and 32 million revenue generating units at the end of 2010 across 14 countries.
The firm comments that Liberty management has a track record of creating value via M&A transactions and generally realizes synergies from acquisitions that improve transaction valuation by at least one OCF multiple turn. This leads that firm to believe that the Australian DTH business and certain under-performing assets in Central and Eastern Europe could be considered by the company as portfolio re-balancing candidates.
LBTYA is trying to improve its revenue generating units by leveraging its broadband speed advantage, rolling out advanced services like HD/DVR and VOD, and pricing the triple-play bundles at attractive prices, typically lower than its competitors.
Citadel Securities anticipates the that the company's adjusted FCF will increase to $2.2 billion in 2015 from ~$825 million in 2010. The company has repurchased 54% of its shares back for $7.1 billion since 2005. The firm expects LBTYA will continue with this trend and buy back another $3.2 billion by 2013.
For more ratings news on Liberty Global click here and for the rating history of Liberty Global click here.
Shares of Liberty Global closed at $43.36 yesterday.
The company is the largest cable operator outside the U.S. and has 20 million customer relationships and 32 million revenue generating units at the end of 2010 across 14 countries.
The firm comments that Liberty management has a track record of creating value via M&A transactions and generally realizes synergies from acquisitions that improve transaction valuation by at least one OCF multiple turn. This leads that firm to believe that the Australian DTH business and certain under-performing assets in Central and Eastern Europe could be considered by the company as portfolio re-balancing candidates.
LBTYA is trying to improve its revenue generating units by leveraging its broadband speed advantage, rolling out advanced services like HD/DVR and VOD, and pricing the triple-play bundles at attractive prices, typically lower than its competitors.
Citadel Securities anticipates the that the company's adjusted FCF will increase to $2.2 billion in 2015 from ~$825 million in 2010. The company has repurchased 54% of its shares back for $7.1 billion since 2005. The firm expects LBTYA will continue with this trend and buy back another $3.2 billion by 2013.
For more ratings news on Liberty Global click here and for the rating history of Liberty Global click here.
Shares of Liberty Global closed at $43.36 yesterday.
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