Rosenblatt Raises Price Target for Liberty Broadband to $91, Anticipates Future Merger with Charter

Rosenblatt analysts raised their price target for Liberty Broadband Corporation (NASDAQ:LBRDK) to $91 from $80, maintaining a Buy rating on the stock. The analysts noted that Liberty Broadband shares have declined 21% year-to-date, while Charter shares have dropped 8% and the S&P 500 has risen 14%. However, in the past three months, Charter shares have surged 30% after fears about the impact of the loss of ACP low-income broadband subsidies on subscriber counts proved less severe than anticipated, with Liberty Broadband shares also rising 20%.

The analysts highlighted that Liberty Broadband's performance has lagged, pushing its shares to near-record discounts relative to the value of its 26% stake in Charter, which is worth more than Liberty Broadband's market cap. They believe that eventually, this discount will narrow through a merger between the two companies, though the timing remains uncertain. The analysts updated estimates to reflect the muted growth in Liberty Broadband's GCI business and raised the price target due to the increased value of its Charter holdings.