NEW YORK (TheStreet) -- Shares of Liberty Global (LBTYA) - Get Report are slumping 7.76% to $26.57 late Monday morning after Barclays dropped its price target on the stock to $39 from $47 following Britain's decision early Friday to leave the European Union.
Liberty Global is a London-based telecommunications and television company.
"We do see European Telcos as a fundamentally defensive sector in nature with relatively limited sensitivity to GDP changes, especially in fixed line for which we are seeing improving pricing power," Barclays, which has an "overweight" rating on the stock, said in an analyst note.
The price target drop for Liberty Global was driven by the deconsolidation of Liberty's Latin America Telecom and Media group, LiLAC, alongside the depreciations of the Euro and the pound in the forex (FX) market, the firm noted.
"The bulk of our price target change... is due to the LiLAC spin rather than FX," the firm added.
The market is under additional pressure for the second consecutive trading day as Brexit concerns mount across the world.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: LBTYA
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.