UPDATE: Pivotal Research Group Raises PT to $23 on Starz; No Barriers to Sale

Pivotal Research Group maintained Starz (NASDAQ: STRZA) with a Buy rating and raised the price target from $21.00 to $23.00.

Pivotal Research Group commented, "We continue to find the shares of Starz attractive given what we believe is a compelling valuation relative to a business that is likely to be far more resilient than anticipated by the market with significant additional optionality should the company be acquired by a large content operator. We put the odds of a sale of Starz at 60% given Liberty's desire to drive a sale, historic success with sales and significant upside for the right strategic buyer. Further, given how Liberty set up the effective Starz spin there does not appear to be a major barrier to a potential relatively quick tax efficient sale."

Starz closed at $19.93 on Monday.