UPDATE: Stifel Nicolaus Raises PT to $21 on Liberty Interactive on Buyback Expectation
Stifel Nicolaus reiterated its Buy rating on Liberty Interactive (NASDAQ: LINTA) and raised its price target from $19 to $20.
Stifel Nicolaus noted, "We are updating our target price and valuation on Liberty Interactive. Our new target price of $21.00 (from $19.00) reflects stronger expectations of share repurchases in 2H12 and 2013. Our new 2012 and 2013 EPS estimates reflect half of FCF being used for share buybacks, in-line if not conservative given Liberty's historical penchant for buybacks. We believe that while EBITDA growth over the next year will be sluggish given the recent domestic and international trends posted in the most recent quarter, EPS growth will likely be far stronger reflecting a buyback of some 38mn shares by the end of 2013."
Liberty Interactive closed at $18.11 on Wednesday.
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