UPDATE: Morgan Stanley Upgrades Liberty Media On Multiple Factors


In a report published Wednesday, Morgan Stanley analyst Benjamin Swinburne upgraded the rating on Liberty Media (NASDAQ: LMCA) from Equal-Weight to Overweight, and named a $158.00 price target.

In the report, Morgan Stanley noted, “YTD, the NAV discount has widened and shares have lagged the market by 1,500 bps. While the current NAV discount is not wide on a historical basis, we see the upcoming LBRDA/K spin-off (announced May 8th, likely Oct. close) as a catalyst for tightening.

"In addition, we argue for a complete collapse of the discount as the market prices in two hypothetical transactions that mirror prior tax-efficient approaches to monetizing investments by Liberty. Finally, we see additional upside to our bull case based on performance of the core underlying assets.”

Liberty Media closed on Tuesday at $136.14.

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