National Alliance Securities See Liberty Interactive Corp As A Long Term Opportunity

National Alliance Securities issued a report Friday on Liberty Interactive Corp QVCA claiming that the shares present “real long term opportunity” and maintained a Buy rating.

Analyst Robert Routh noted that “at present levels QVC seems a bargain for long term investors, as once the LVNT share distribution takes place the impact of the clientele effect combined with multiple expansion and continued share repurchases should lead to meaningful leveraged equity returns making the equity more than interesting.”

“Our models show that QVC with rights to the LVNT share distribution are worth $33.38, or 40.31 percent higher than where they closed yesterday and without rights to the LVNT distribution should be trading at $29.38, still 23.49 percent higher than yesterdays close,” according to Routh.

Routh gave the reminder that “Although some may be concerned about the upcoming Holiday season and how well the home shopping entities as a group will fare during that time, it is important to remember that historically the fourth quarter is the best quarter operationally for both QVC and HSN, which is 38 percent owned by QVC.”

In conclusion, Routh saw “QVC as an entity with real operating businesses and a well-recognized name that religiously repurchases shares that is almost a must own as the risk reward profile seems highly favorable at present levels.”

Liberty Interactive Corp recently traded at $24.71, up 2.53 percent.