Pivotal Research analyst Jeffrey Wlodarczak reiterated a Buy rating on Liberty LiLAC Group (LILAK – Research Report) today and set a price target of $10.00.
Jeffrey Wlodarczak has given his Buy rating due to a combination of factors that suggest potential upside for Liberty LiLAC Group’s stock. Despite mixed fourth-quarter results, the company has shown promising performance in regions outside of Puerto Rico, with notable EBITDA growth in the Caribbean, Panama, and Costa Rica. This growth is expected to continue into 2025, contributing to a positive revenue outlook.
Furthermore, the company’s strategic initiatives, such as reducing capital expenditure as a percentage of revenue and nearly completing the transition from copper to fiber networks, are expected to enhance operational efficiency. Wlodarczak also highlights the potential for a turnaround in Puerto Rico, supported by the company’s high-quality wireless network and bundling capabilities. The valuation approach, which includes a sum of the parts methodology and a conservative EBITDA multiple, suggests that the target price of $10 offers significant upside from current levels. Overall, the combination of these factors underpins the Buy rating, with the possibility of the target valuation being conservative if improvements in Puerto Rico occur sooner than anticipated.
Wlodarczak covers the Communication Services sector, focusing on stocks such as Charter Communications, Comcast, and Meta Platforms. According to TipRanks, Wlodarczak has an average return of 3.8% and a 54.47% success rate on recommended stocks.