Liberty Latin America downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Liberty Latin America to Neutral from Buy with a price target of $10.50, up from $9.30. The stock has risen about 30% since being added to the Americas Buy list on May 30th, and while the firm continues to see the past years’ M&A transactions as having structurally improved the company’s competitive positioning in several key markets, it is turning increasingly cautious on the competitive outlook particularly for Puerto Rico, the analyst tells investors in a research note. Leverage remains a key risk that is adding significant volatility to the thesis, though there is also potential upside risk from favorable rates movements, the firm added.