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Carlyle Acquires LiveU; Shares Rise 2.7%

Shares of global alternative asset manager Carlyle Group (CG) gained 2.7% on Tuesday after it announced the acquisition of LiveU, a live video streaming and remote production solutions company. The details of the transaction, which is subject to regulatory approvals, have not been disclosed so far.  

With this deal, Carlyle seeks to use LiveU’s technology and capitalize on the rapidly growing demand for high-quality live video transmission. This trend is expected to accelerate with the rollout of 5G and as media production in the cloud progresses. (See Carlyle stock chart on TipRanks)

As per the deal, equity for the investment will be provided by Carlyle Europe Technology Partners (CETP) IV, a fund that invests in middle market technology-focused opportunities in Europe and the US.

On July 12, Deutsche Bank analyst Brian Bedell reiterated a Hold rating on the stock and raised the price target to $51 from $45. The new price target implies 13.6% upside potential.

Bedell is of the opinion that Carlyle’s stocks are poised to benefit from improving organic growth trends, less pressure on fee rates, a “generally constructive” macro growth outlook and “still relatively inexpensive” valuations.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus based on 4 Buys and 6 Holds. The average Carlyle price target of $49.05 implies 9.3% upside potential from current level.

According to TipRanks’ Smart Score system, CG gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.

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