Liberty Global's Price Target Raised to $13 by Morgan Stanley

Morgan Stanley raised Liberty Global's price target to $13 from $12.50 and maintained an Equal Weight rating. The move follows the Q2 report and updates the company's model. The firm's analysis suggests that the price target is a reflection of the company's updated model.

Morgan Stanley has recently raised its price target for Liberty Global (LGI) to $13 from $12.50, while maintaining an Equal Weight rating. This move follows the company's Q2 report and updates the firm's financial model. According to Morgan Stanley's analysis, the price target reflects the company's improved performance and strategic potential [1].

The update from Morgan Stanley comes after Liberty Global reported its Q2 earnings, which showed a slight improvement in revenue and EBITDA forecasts. However, the projected unlevered free cash flow yield for 2026 remains lower than that of other incumbents, contributing to the cautious stance of the analysts. The company's history of successfully addressing conglomerate discounts through strategic actions, such as spin-offs and IPOs, is seen as a positive factor. However, the ability to generate free cash flow during the ongoing technology upgrade cycle remains uncertain [2].

Liberty Global's stock is currently trading at around $13.00, with a price target of $13.00 according to Morgan Stanley's analysis. Despite the potential for strategic transactions in the next 12-24 months, the uncertainty surrounding free cash flow generation and the lower valuation compared to European peers have led to a cautious outlook. Morgan Stanley's Equal Weight rating suggests that the company's stock is neither overvalued nor undervalued, indicating a balanced view of its prospects.

In addition to the analyst update, recent insider trading activity has also been notable. Director Miranda Curtis and CFO Charles H. R. Bracken sold a combined total of 136,980 shares, significantly reducing their holdings. Vanguard Group Inc., an institutional investor, increased its stake in Liberty Global by 3.7%, now owning approximately 1.36% of the company valued at $56.98 million [3].

Liberty Global, a Communication Services sector company, continues to face challenges in generating free cash flow during its technology upgrade cycle. However, the company's strategic potential and history of successful value unlocking actions remain positive factors. Investors should closely monitor the company's ability to generate free cash flow and its progress in the technology upgrade cycle to assess its future performance.

References:
[1] https://www.ainvest.com/news/liberty-global-hold-rating-strategic-potential-cash-flow-uncertainty-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-vanguard-group-inc-boosts-stock-position-in-liberty-global-ltd-lbtyk-2025-08-25/
[3] https://www.marketbeat.com/instant-alerts/filing-vanguard-group-inc-boosts-stock-position-in-liberty-global-ltd-lbtyk-2025-08-25/