UBS has initiated coverage of Liberty Latin America with a neutral rating and a price target of $9.00 per share, compared with the stock's closing price of $8.63 on Wednesday.
The Swiss bank's analyst Leonardo Olmos cited Liberty Latin America's premium valuation of roughly 30% relative to Latin American telecommunications peers. The valuation reflects an expected free cash flow yield of approximately 8.5% in 2027 and 25% currently, according to UBS projections.
Liberty Latin America is projected to generate $125 million in free cash flow to equity holders in 2026, rising to $240 million by 2028. For 2028, UBS modeled scenarios ranging from $134 million to $313 million, depending on revenue growth, margin expansion, capital investment, and cash conversion efficiency.
Revenue growth is forecast at 2% annually through 2028, supported by mobile market positions, service convergence, and regional market structures. Networks platform revenue is expected to grow about 9% over the same period, while operating income before depreciation and amortization is projected to rise roughly 5%, driven by operational normalization in Jamaica, stabilization in Puerto Rico, and cost efficiencies.
Liberty Latin America operates telecommunications networks across the Caribbean and Central America. UBS noted risks including elevated leverage, fixed charges below operating income, and Puerto Rico exposure, which limit operational flexibility.
The coverage was initiated on September 3, 2026.
