Liberty Interactive's TV Shopping Still Has Legs

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Liberty Interactive Corp QVCA still has legs nearly 30 years since the dawn of cable TV and the launch of its core shopping channel QVC, an analyst said Thursday.

More than 40 percent of the company's 2014 sales of $8.4 billion were derived from e-commerce and the company has roughly 1 million "likes on Facebook Inc FB.

Brean Capital's Tom Forte launched coverage with a Buy rating and $34 target price.

Liberty Interactive shares are off more than 3 percent in the past year and changed hands recently at $29.37, up 1.9 percent.

Potential catalysts for the stock include growth in its mobile business as well as a stronger dollar, Forte said.

About 31 percent of the company's revenue is from its international segment, while QVC's mobile business grew 42 percent last year.

E-commerce revenue grew 9.5 percent, while total revenue inched up just 1.5 percent, according to Forte.

The company is strong in social media, while mobile accounted for 19 percent of recent sales, according to Forte.

Liberty Interactive's presence in six countries suggests potential for further international expansion and Forte likes the company's branded credit cards and so-called Easy Pay plans.

Liberty Interactive also owns a 38 percent stake in HSN Inc. HSNI, a direct sales company that includes TV shopping, print catalogs and e-commerce.

Liberty Interactive took its present form last year when it split off much of its digital commerce business as Liberty Ventures LVNTA.

QVC was founded in 1986, acquired by Comcast Corporation CMCSA a decade later.

John C. Malone's Liberty Media Corp LMCA acquired the company in 2003 and created the QVC tracking stock Liberty Interactive in 2006.

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Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsBrean CapitalTom Forte
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