Liberty Global stock price target raised to $21 by Benchmark

Investing.com - Benchmark raised its price target on Liberty Global (NASDAQ:LBTYA) to $21.00 from $18.00 on Monday, while maintaining a Buy rating on the stock. Currently trading at $10.87, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $9.90 to $35.00.

The price target increase follows Liberty Global’s second-quarter 2025 earnings release and conference call held last Friday. With an EBITDA of $1.07 billion in the last twelve months and revenue of $4.63 billion, Benchmark noted that the company’s Q2 results aligned with its annual guidance and closely matched the firm’s estimates.

Liberty Global’s management reaffirmed most of its 2025 guidance, with two exceptions: an increase in Telenet’s EBITDAaL outlook and an improved Liberty Services & Corporate adjusted EBITDA outlook of negative approximately $175 million, up from below $200 million previously.

Benchmark highlighted "tremendous equity upside optionality" in realizing equity from Liberty Global’s VMO2 and VodafoneZiggo joint ventures as well as consolidated Telenet, though noted challenges in achieving a major value unlock within the targeted 12 to 24 month timeline.

The firm also referenced the successful November 2024 Sunrise spin-off, noting that shareholders who retained their distributed Sunrise shares have realized approximately $11 in equity value for each LBTYA share owned, factoring in the recent Swiss franc appreciation and Sunrise’s ongoing 7% dividend yield. For deeper insights into Liberty Global’s joint ventures and comprehensive valuation metrics, access the full Pro Research Report on InvestingPro, where you’ll find 7 additional key investment tips and advanced analysis tools.

In other recent news, Liberty Global Ltd. is reportedly planning to cut hundreds of jobs as part of a new restructuring program. According to sources familiar with the matter, the company has already initiated the first round of cuts by offering voluntary buyouts to employees, with a second round of reductions planned if necessary. This move is part of an effort to streamline operations within the company. Additionally, Liberty Global is involved in discussions with Telefonica SA (BMV:TEFN) regarding a potential change in control of their UK joint venture. Telefonica (NYSE:TEF) is reportedly in the early stages of planning to take full control of the venture, although no formal steps have been taken yet. The venture was previously valued at up to £31.4 billion ($41.9 billion), according to sources. These developments highlight ongoing strategic adjustments within Liberty Global and its partnerships.

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