Analyst Sees International Deal For Martha Stewart Living Omnimedia Inc.

Martha Stewart Living Omnimedia Inc. (NYSE: MSO) is cruising in Southeast Asia for merchandising deals and will soon announce a partner there, an analyst said Friday.FBN's Robert Routh believes the company's first international deal is imminent and that it may be followed with a buyback announcement.Shares of the New York-based company changed hands recently at $5.06, up 4 percent."We know it's hard to forget the past," Routh said, adding that investors are "buying the future, not the past."The company currently generates no merchandizing revenue from international markets, which Routh called "a huge opportunity."Moreover home shopping companies HSN Inc. (NASDAQ: HSNI) and privately held QVC "are both interested" in owning Martha Stewart, according to Routh, who said the company would fetch a premium if it were put on sale. Routh launched coverage with a price target of $6.31 and a Sector Perform rating. Shares of Martha Stewart are down 83 percent in the past 10 years, a period which saw its current chairman, 72-year-old Martha Stewart, do a short stint in a federal penitentiary for insider trading.The company effectively exited most of its publishing business in October by licensing its magazines in a 10-year deal with Meredith Corp. (NYSE: MDP), although Stewart retains editorial control.