UPDATE: Pivotal Research Group Initiates Starz at Buy on Potential Sale Catalyst

Pivotal Research Group initiated coverage on Starz STRZA with a Buy rating and a $21.00 price target. Pivotal Research Group commented, "A potential acquisition of Starz appears compelling for a large diversified content operator that has the leverage to drive higher pricing for Starz, successfully exit Starz movie relationships and the ability to boost Starz original content strategy. We put the odds of a sale of the company at 60% given Liberty's desire to sell, historic success with sales and significant upside for the right strategic buyer. Further, given how Liberty set up the effective Starz spin there does not appear to be a major barrier to a potential relatively quick tax efficient sale." Starz closed at $16.21 on Friday.