Liberty Global Downgraded By Morgan Stanley, Firm Cuts Target To $43


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Morgan Stanley issued a company update on Liberty Global plc - Class A Ordinary Shares (NASDAQ: LBTYA) as analysts see more modest drivers of top line growth for 2016. Morgan Stanley downgraded Liberty Global from Over-weight to Equal-weight and lowered their price target to $43.

Benjamin Swinburne, Ryan Fiftal and Bronson Kussin wrote, "While we continue to expect Liberty's results to show improvement vs 2015...we are less certain on the realization of several key growth drivers in 2016...Further we remain constructive on Liberty's long term opportunity in mobile, but a slower than expected ramp suggests that the benefit may be less meaningful…"

Morgan Stanley believes that Liberty Global's growth trajectory is uncertain due to a combination of factors including weak earnings results in the Netherlands and heightened operational competition in the UK and Germany.

Analysts noted that Liberty shares were hurt in 2015 possibly due to reduced growth outlook and concerns over capital allocation, both of which are not expected to improve significantly in 2016.

However, Morgan Stanley does believe that Liberty's cost cutting and recent reinvestment initiative may help drive growth, which, if it grows faster than market expectations could drive the company's share price higher.

Currently, Liberty Global is trading at $35.93, down 5.94 percent.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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Posted In: Analyst ColorShort IdeasDowngradesPrice TargetAnalyst RatingsTrading IdeasBenjamin SwinburneBronson KussinMorgan StanleyRyan Fiftal