Rosenblatt Increases Price Target for Liberty Broadband

.August 14, 2024 12:53:00 PM

Rosenblatt analysts raised their price target for Liberty Broadband Corporation (NASDAQ:LBRDK) to $91 from $80, maintaining a Buy rating. Liberty Broadband shares have declined 21% year-to-date, while Charter shares dropped 8% and the S&P 500 rose 14%. In the past three months, Charter shares surged 30% after fears about the impact of the loss of ACP low-income broadband subsidies on subscriber counts proved less severe than anticipated, with Liberty Broadband shares also rising 20%.

Analysts noted Liberty Broadband’s performance lagged, pushing shares to near-record discounts relative to its 26% stake in Charter, worth more than Liberty Broadband’s market cap. They believe a merger between the two companies will eventually narrow this discount, though timing is uncertain. Estimates were updated to reflect muted growth in Liberty Broadband’s GCI business, leading to a raised price target due to increased value of its Charter holdings.