Benchmark maintains Buy on Liberty Formula One, target at $102

Published 28/02/2025, 17:36
Benchmark maintains Buy on Liberty Formula One, target at $102

On Friday, Benchmark analysts maintained their Buy rating on Liberty Media Corp-Liberty Formula One (NASDAQ: FWONA) shares, reiterating a price target of $102.00. Currently trading at $87.78, the stock has shown strong momentum with a 33.75% return over the past year. The firm’s analysts highlighted the significant global growth opportunities for the sport and the rarity of sports assets as key factors for their positive outlook on the stock. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value calculations.

The analysts at Benchmark expressed their continued confidence in Liberty Formula One’s prospects, despite acknowledging that the recent financial results and the upcoming 2024 Las Vegas Grand Prix might have tempered immediate enthusiasm for the stock. They emphasized the company’s potential for growth on a global scale and the limited availability of comparable sports assets in the market. The company’s impressive 35.32% revenue growth and strong financial health score from InvestingPro support this optimistic outlook. Discover 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Liberty Media Corp-Liberty Formula One, which is responsible for the commercial aspects of Formula One racing, including the promotion of the Grand Prix events, has been the focus of investors looking for opportunities within the sports entertainment sector. With a market capitalization of $21.83 billion and a healthy current ratio of 2.7, the company’s management of the high-profile racing series positions it to capitalize on the sport’s international fan base and media rights.

The reiterated price target of $102.00 reflects the analysts’ assessment of the company’s value and their expectation for its stock performance. This target is set based on the company’s current financial health, strategic initiatives, and the overall market conditions that could influence the stock’s future trajectory.

Investors and market watchers will be keeping a close eye on Liberty Media Corp-Liberty Formula One as it navigates the competitive sports entertainment landscape and works to deliver on its growth targets. The company’s ability to leverage the Formula One platform and expand its reach in new and existing markets will be critical to achieving the outcomes anticipated by Benchmark analysts.

In other recent news, Liberty Media Formula (NASDAQ:FWONA) One Corp reported a 6% increase in revenue for 2024, attributed to successful sponsorship deals and increased fan engagement. Despite this growth, the company’s fourth-quarter earnings showed revenues of $1,167 million and an adjusted OIBDA of $200 million, which were below Guggenheim’s estimates of $1,346 million in revenue and $269 million in adjusted OIBDA. Guggenheim analyst Curry Baker responded by raising the price target for Liberty Media to $102, maintaining a Buy rating on the stock. The analyst noted potential positive catalysts, such as the U.S. media rights renewal and growing sponsorship momentum.

Operational challenges, particularly the underperformance of the Las Vegas Grand Prix, impacted the company’s performance. Liberty Media’s management remains optimistic about the event’s future and has plans to improve its financial outcomes. The company is also preparing for the 2025 Formula One season, focusing on media rights negotiations and expanding its U.S. market presence. Liberty Media aims to host 24 races in 2025 and continues to work on strategic initiatives like the 2026 powertrain regulations and achieving net-zero emissions by 2030. The company’s adaptability and strategic partnerships are expected to drive long-term shareholder value, according to executives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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