Liberty Earnings: Flattish Revenue and EBITDA in the First Quarter; Maintaining Fair Value Estimate

We are maintaining our $28 fair value estimate for Liberty Global after the company reported its first-quarter results. Shares remain deeply undervalued, although we do not see any nearby catalysts, given the company’s announcement two months ago of the spinoff of the Sunrise division in Switzerland has done little to the share price. Our thesis continues to be that Liberty still has a lot of work to do to reduce the complexity of its corporate holding to highlight the value of its assets and reduce its conglomerate discount.