Deutsche Bank Downgrades Liberty Media To Hold

Deutsche Bank reports that Liberty Media Corporation LSTZA is now trading at 6.8x EV/'10E EBITDA, in line with TWX and within 100bp of DIS, VIAb and CBS, “while the stock has moved just past our PT, which remains unchanged at $65.” Thus, Starz has reached fair value, in Deutsche Bank's view, and a Hold is therefore the appropriate rating. Deutsche Bank adds, “Catalysts for further revaluation are too far off, in our view, including: (1) a new Netflix, Inc. NFLX licensing deal not likely until late 2011; and (2) using its cash balance for repurchases not likely until having visibility with Netflix and original content success.” Liberty Media closed at $66.68 on Monday; Netflix closed at $166.84.