Wunderlich Securities Raises Its PT On Liberty Global Following Technology Conference

Wunderlich Securities is increasing its price target on Buy-rated Liberty Global LBTYA from $43 to $47 with its model now conformed with 2011 management guidance and 2010 actual results that barely deviated from its sales, OCF, and CapEx estimates. Wunderlich's assumptions reflect 6% organic top-line and OCF growth with little margin expansion this year off new initiatives, triple play CapEx that is flat to down as a percentage of sales with overall CapEx levitated by the Chilean 4G build, German in-home wiring, etc., and mid-teen FCF growth. Wunderlich assumes $1B vicinity in 2011 share repurchases, a positive for the stock with just 17 investors owning more than 70% of the A shares. Momentum contributors include: digital TV migration with nine million analog homes still in the queue; exploitation of DOCSIS 3.0 to drive market share with Fiber Power bundles rather than top of market pricing; wireless MNO/MVNO in Chile; capital-lite in Europe; operational discipline; and opportunistic M&A coupled with share buybacks. Wunderlich has a Buy rating on LBTYA LBTYA closed Monday at $42.10