Pivotal Research Reiterates a 'Buy' on Liberty Media (LMCA); Share Price Worth Up To $141
Pivotal Research Reiterates a 'Buy' on Liberty Media (LMCA); Share Price Worth Up To $141 3:24 PM ET, 08/16/2012 - Street Insider Pivotal Research reiterates a 'Buy' on Liberty Media (NASDAQ: LMCA) price target of $126.00 (from $118.00).
Analyst, Jeffrey Wlodarczak, said, "LMCA shares continue to appear attractive as: 1) a less expensive way to play BUY rated Sirius (Nasdaq: SIRI) sitting alongside the effective controlling shareholder, 2) we believe a Reverse Morris Trust (RMT) merger between SIRI and Liberty's SIRI stake is inevitable which should benefit both SIRI and LMCA shareholders in a transaction similar to LMDIA/DTV's merger, 3) Starz should receive a premium valuation as a stand-alone company and we believe this move is a precursor to the medium to long-term sale of the company, 4) potential for accelerated accretive share repurchases given LMCA's sizeable liquidity position [and Liberty management has had a great run over the last 5 years] and 6) LMCA still trades at an approximate ~21% discount to its mostly public traded assets."
Wlodarczak actually said the shares of LMCA could actually be worth $141 if SIRI reaches $3.00 YE '13 target; Starz is worth 5x '13 EBITDA; Value of other public company stakes go up; Values rise in public companies owned; and reasonable taxes.
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Shares of Liberty Media closed at $100.28 yesterday, with a 52 week range of $72.70-$104.34. Rating : (7 Ratings)