Index falls as earnings results weigh; pound above $1.33, Bodycote soars
Investing.com - Benchmark has reiterated its Buy rating and $12.00 price target on Liberty LiLAC (NASDAQ:LILA), citing the company’s long-term growth potential across more than 20 consumer and business markets in Latin America. According to InvestingPro data, the stock currently trades at $6.51, with analyst targets ranging from $6.00 to $13.90, suggesting significant upside potential.
The research firm highlighted Liberty LiLAC’s achievement of Fixed Mobile Convergence (FMC (NYSE:FMC)) penetration exceeding 30% across its major markets, noting there remains "ample growth headroom" with typically stable duopoly market structures where the company holds top positions. The company maintains impressive gross profit margins of 77.9%, reflecting its strong market positioning.
Benchmark also pointed to Liberty Networks, including its new manta subsea network buildout, as a "complementary Caribbean infrastructure asset that is unique in the region and essential to connectivity."
The firm projects approximately $825 million in cumulative free cash flow for Liberty LiLAC between 2024 and 2026, which it describes as "compelling relative to LLA’s ~$1.35B equity market capitalization," despite falling short of an earlier $1 billion company goal. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering 1,400+ top stocks.
Benchmark’s $12 price target includes what it calls an "unrealistically punitive" negative equity value for Puerto Rico operations, despite the debt being non-recourse to the Liberty LiLAC parent company.
In other recent news, Liberty Latin America has been the focus of analyst attention. Benchmark analysts have reiterated their Buy rating for the company, maintaining a price target of $12. This decision comes despite market uncertainties, particularly those related to tariff policies affecting economies in the Caribbean and Central America. The analysts expressed confidence in Liberty Latin America’s stock, describing the current market valuation as exaggerated due to a perceived capital call for Liberty Puerto Rico. They argue this perception is inaccurate, given the company’s siloed debt structure. Benchmark’s analysis takes into account a nearly $900 million negative equity value for Puerto Rico, based on an 8.0x ratio of annualized Covenant EBITDA from the last two quarters. These recent developments highlight ongoing interest and analysis from financial experts regarding Liberty Latin America’s market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.