Seaport starts Liberty Live at Buy, says NAV discount ‘almost inexplicably wide’

As previously reported, Seaport Research initiated coverage of the Liberty Live (LLYVA) tracking stock with a Buy rating and $56 price target. The LLYVA and LLYVK shares represent Liberty Media’s 30% ownership stake in Live Nation Entertainment (LYV), plus a small set of public and private assets and about $820M of net debt, says the firm, which estimates this tracker to be trading at about a 37.5% discount to net asset value, or NAV, based on Live Nation’s current trading levels and a 42% discount when using the firm’s $104 price target for Live Nation shares. The firm calls this NAV discount “almost inexplicably wide” and thinks this “negative-enterprise-value situation is an unusually attractive opportunity for long-term investors.”