UPDATE: Jefferies Initiates Coverage on Liberty Global with Buy Rating, $92 PT on Multiple Positive Factors

In a report published Tuesday, Jefferies analyst Ulrich Rathe initiated coverage on

with a Buy rating and $92.00 price target. In the report, Jefferies noted, “We initiate coverage with a Buy recommendation at a PT of $92. A strong operational growth outlook (5% OCF CAGR 2012-15e) is amplified by high financial gearing (14% FCF CAGR 2012-15e). With leverage close to targets and limited risk of cash constraints from M&A, we expect continued high cash returns. While valuation discounts the outlook to some extent, European cable assets have strategic value due to the quad-play risk faced by mobile-only operations.” Liberty Global closed on Monday at $79.85.