UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Liberty Global plc as Advanced Service Momentum Should Equal Pricing Power

In a report published Tuesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating on Liberty Global plc LBTYA, and raised the price target from $48.00 to $55.00. In the report, Wunderlich Securities noted, “We are increasing our price target on Buy-rated Liberty Global (LBTYA) to $55 from $48 (post-stock dividend) as we expect pricing power off advanced products to soon complement high quality volume growth. WSI's model has the flexibility to gauge eventual 2018 EBITDA off pricing by product growth for each market as well as resultant price target. Although markets vary in the predominance of pricing vs. volume (for instance Virgin just implemented a 6.7% February average broadband price increase in the U.K.), an across-the-board approach with 3.5% annual video + data price hikes with a 1% voice contraction (including usage), would further increase our target to $60, suggesting modest base assumptions. Our price target is off a market-linked approach using applicable European market indices.” Liberty Global plc closed on Monday at $41.36.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsMatthew HarriganWunderlich Securities
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