Analyst Cesar Medina of Morgan Stanley maintained a Hold rating on Liberty Global LiLAC (LILA – Research Report), with a price target of $6.00.
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Cesar Medina’s rating is based on a combination of factors, primarily focusing on the challenges and opportunities within Liberty Global LiLAC’s operations. A significant factor is the situation in Puerto Rico, which is seen as a crucial element for the stock’s future performance. While there are emerging signs of improvement, such as better churn rates and net promoter scores, the challenges in this region have led to a cautious outlook.
Additionally, the company’s valuation is comparable to its peers, which supports the Hold rating. The uncertainty surrounding capital allocation and buybacks due to the issues in Puerto Rico further limits the visibility of potential gains. However, positive trends in other regions like the Caribbean and potential synergies from the joint venture in Costa Rica provide some optimism for future growth.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LILA in relation to earlier this year.