UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Liberty Interactive Corporation on Chinese Market Potential

In a report published Thursday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating on

, and raised the price target from $36.00 to $40.00. In the report, Wunderlich Securities noted, “Given the U.S. market's warm reception to May's JD.com (JD-NR) IPO, it is now apropos to recognize potential from Buy-rated Liberty Interactive's (LINTA) 49% interest in Chinese TV shopping entrant CNR Mall. If TV shopping remains just 1.3% the size of the Chinese online market, even in 2025 this implies $1 in 2014 per share value if CNR Mall just holds its 3% market share. This increases to $2.30, or near $4.55, with share improving to 7.5%, or 15%, off cloning the QVC biz model. (We assume 20% 2025 OCF margins near the global QVC norm). We are now increasing our 2014 target to $40 including $2.30 per share benefit from CNR Mall and $0.77 from QVC France. Although the World Bank forecast revision is an albatross for retailing stocks, the heightened relevance of QVC's biz model is evident.” Liberty Interactive Corporation closed on Wednesday at $29.43.