Deutsche sees Liberty trying to eliminate Liberty SiriusXM discount

Deutsche Bank analyst Bryan Kraft lowered the firm’s price target on Liberty SiriusXM (LSXMA) to $57 from $58 and keeps a Buy rating on the shares. Liberty has scheduled a special meeting of shareholders for July 17 to approve the split off of the Atlanta Braves as a separate company no longer owned by Liberty Media, the analyst tells investors in a research note. The firm believes the “cleaning up” of Liberty Sirius will be followed by an effort by Liberty to structurally eliminate the net asset value discount, which it estimates currently stands at 38%. While a spin-merge is the most likely outcome, there are two other options for eliminating the NAV discount, both of which would be more efficient with Liberty Sirius remaining a tracking stock, says Deutsche. The firm updated its NAV model following Liberty’s Q1 earnings call, which drops Liberty SiriusXM’s target by $1.