Cesar Medina, an analyst from Morgan Stanley, maintained the Hold rating on Liberty Global LiLAC (LILA – Research Report). The associated price target is $8.00.
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Cesar Medina’s rating is based on several key considerations. Liberty Global LiLAC’s recent performance showed a slight miss in Adjusted OIBDA, primarily due to underperformance in Puerto Rico, although this was partially mitigated by stronger results in Costa Rica. The company has maintained its medium-term free cash flow ambitions, despite this setback, pointing to outperformance in regions other than Puerto Rico and a reduction in capital expenditure as positive factors.
While there were areas of growth, such as in C&W Caribbean and Panama, which surpassed expectations in terms of adjusted OIBDA, the significant challenges in Puerto Rico, including declines across all segments, continue to be a concern. The balance between areas of growth and regions struggling, alongside management’s strategic adjustments, led to the Hold rating as the company seeks to stabilize and achieve its financial targets.
Based on the recent corporate insider activity of 63 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.