What the bad jobs report means for markets
Wednesday, Benchmark analysts reiterated their Buy rating and $102.00 price target on Liberty Media Corp-Liberty Formula One (NASDAQ: FWONA), ahead of the company’s earnings release scheduled for tomorrow. The stock, currently trading at $88.57, has shown impressive momentum with a 42% return over the past year. According to InvestingPro analysis, the company maintains excellent financial health with an overall score of 3.05 out of 5. The firm’s analysts anticipate the earnings call to be largely centered around the Formula One Group, particularly focusing on the start of the F1 season with this week’s inaugural race in Bahrain.
The analysts expect the conference call to highlight CEO Stefano Domenicali’s insights on the global interest in the sport, as well as discussions on how growth in various areas is impacting the value of F1 assets. These areas include race attendance, sponsorship monetization, television and streaming viewership, and social media engagement. This growth strategy has already yielded results, with revenue increasing by 35% in the last twelve months to $3.7 billion.
Liberty Media’s strategic developments, especially the investments made for the upcoming Las Vegas Grand Prix in November, are also predicted to be a topic of interest due to their potential to enhance the company’s operating model and direct financial returns.
While immediate financial results may not be the primary focus for investors, the analysts noted that there is anticipation for updates on the regulatory review process of the MotoGP acquisition by the European Union. However, it was mentioned that significant new information regarding this matter might not be forthcoming at this time. With a strong current ratio of 2.7 and moderate debt levels, the company appears well-positioned for strategic acquisitions. Discover more detailed insights and 8 additional exclusive ProTips for FWONA with an InvestingPro subscription, including comprehensive valuation analysis and growth projections.
In other recent news, Liberty Media has appointed Derek Chang as its new President and CEO, effective February 1, 2025. Chang, who has been on Liberty Media’s board since 2021, brings extensive experience from his roles in global media and sports industries. Meanwhile, Liberty Media has extended the deadline for acquiring a major stake in Dorna Sports, the company behind MotoGP racing, to March 31, 2025. This extension follows the European Commission’s decision to initiate a Phase II investigation into the acquisition, which is valued at 3.5 billion euros.
Benchmark has raised its price target for Liberty Media’s Formula One stock from $81 to $102, maintaining a "Buy" rating. This adjustment reflects optimism about Liberty Media’s structural simplification and growth outlook. The European Union’s antitrust division is set to investigate the MotoGP acquisition further, citing potential concerns about competition in the broadcasting and streaming markets. Liberty Media has expressed confidence in the acquisition’s potential benefits for MotoGP and the motorcycle industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.