UPDATE: Wunderlich Securities Reiterates On Liberty Interactive On Chinese Market Potential
In a report published Thursday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating on Liberty Interactive (NASDAQ: LINTA), and raised the price target from $36.00 to $40.00.
In the report, Wunderlich Securities noted, “Given the U.S. market's warm reception to May's JD.com (JD-NR) IPO, it is now apropos to recognize potential from Buy-rated Liberty Interactive's (LINTA) 49% interest in Chinese TV shopping entrant CNR Mall. If TV shopping remains just 1.3% the size of the Chinese online market, even in 2025 this implies $1 in 2014 per share value if CNR Mall just holds its 3% market share.
"This increases to $2.30, or near $4.55, with share improving to 7.5%, or 15%, off cloning the QVC biz model. (We assume 20% 2025 OCF margins near the global QVC norm). We are now increasing our 2014 target to $40 including $2.30 per share benefit from CNR Mall and $0.77 from QVC France. Although the World Bank forecast revision is an albatross for retailing stocks, the heightened relevance of QVC's biz model is evident.”
Liberty Interactive closed on Wednesday at $29.43.
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