Zacks Investment Research downgraded shares of Liberty Global plc. (LBTYA) from NEUTRAL to UNDERPERFORM on June 28, 2013, with a target price of $67.00.
We downgrade our recommendation on Liberty Global to Underperform primarily based on its current valuation. The stock price has soared more than 52% in the last year. At present, Liberty Global is trading at extremely high multiples compared to both the S&P 500 and the industry average with respect to several valuation metrics. We believe that the stock is overvalued at this stage and the multiples must converge toward its peer average. Additionally, the pay-TV market of Germany is expected to become intensely competitive in the near future. Notably, Germany is the major growth region for Liberty Global. Moreover, business integration risk persists as the company has recently acquired several companies either partially or fully. Liberty Global posted mixed financial results for the first quarter of 2013. While the total revenue surpassed the Zacks Consensus Estimate, net income fell below the same.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Liberty Global plc. (LBTYA),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment