Morgan Stanley Upgrades Liberty Global, Says Lightning Has Struck

After multiple years of deceleration in revenue growth, one Wall Street analyst is now "cautiously optimistic" Liberty Global plc - Class A Ordinary Shares LBTYA can reverse this trend in 2018 and beyond.

The Analyst

Morgan Stanley's Benjamin Swinburne upgraded Liberty Global's stock from Underweight to Overweight with a price target boosted from $38 to $42.

The Thesis

Liberty Global said in late 2015 it plans on building out four million new cable households in the United Kingdom, but its plans suffered some setbacks and management changes, Swinburne said in a note. But after a few years of "hiccups" there's now reason to be "cautiously optimistic" that 2018 will see revenue growth in the UK which in turn will generate EBITDA growth.

So far the company has already constructed 1.1 million HHs in the UK and a new management team in place could result in the company achieving its goal of building out an additional four million HHS through 2021, Swinburne said. Coupled with expectations for growth in Germany, it's second largest market, could prove to be primary drivers of growth in 2018 and 2019.

Price Action

Shares of Liberty Global closed down 4 cents at $36.52.

Related Links:

5 Biggest Price Target Changes For Wednesday

Benzinga's Top Upgrades, Downgrades For January 17, 2018

Posted In: Benjamin SwinburneMorgan StanleyUKAnalyst ColorUpgradesPrice TargetAnalyst RatingsMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.