LINTA May Gain Control of HSN

Jason B Bazinet of Citi upgraded his rating for Liberty Interactive (NASDAQ: LINTA) from "hold" to "buy," while raising his estimates for the company. The target price for LINTA has been raised from $12 to $13.25.

Citi mentioned that LINTA has been successful in delivering robust EBITDA growth in Q3 at QVC, despite tough consumer environment. While QVC's domestic EBITDA surged by 10.4%, that at QVC's international segment rose by 8.8%, despite unfavorable currency exchange environment, Citi said.

According to Citi, there is a possibility of LINTA gaining control of HSN. LINTA may also swap its passive equity stakes for cash stakes in Liberty Capital, Citi added.

Citi has raised its EPS estimates for FY10 by $0.10 to $0.78.