Zacks Investment Research downgraded shares of Liberty Interactive Corporation (LINTA) from NEUTRAL to UNDERPERFORM on March 21, 2013, with a target price of $19.00.
We are downgrading our recommendation on Liberty Interactive to Underperform based on the company's weak financial results for the fourth quarter of 2012. While top line barely met the Zacks Consensus Estimate, net income fell below the same. Meanwhile, the stock price has also soared nearly 34% in the last year and is trading at the high end of its 52-week price range. The slowing growth of the most important QVC segment is a major near-term concern for the company. Continuation of global macroeconomic headwinds and volatility in the foreign exchange rates may result in fluctuating top line for the company's TV home shopping business. Furthermore, the company's e-commerce businesses are suffering losses. This may affect the brand value of Liberty Interactive. We believe that the company is currently overvalued as we do not find any near-term catalyst for Liberty Interactive.
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