Benchmark reiterates buy rating on Liberty Formula One stock

Benchmark maintained its buy rating and $102.00 price target on Liberty Media Corp-Liberty Formula One (NASDAQ:FWONA) on Thursday. The stock, which has delivered a remarkable 34.66% return over the past year, is currently trading near its 52-week high of $95.33. According to InvestingPro data, the company’s market capitalization stands at $21.79 billion.

The research firm cited Formula One’s "considerable global growth momentum" and the "paucity of public market sports assets" as key factors supporting its positive outlook. Benchmark noted that F1’s social media profile for teams and drivers continues to grow faster than other major sports. This growth is reflected in the company’s financial performance, with annual revenue reaching $3.51 billion and net income expected to grow this year, according to InvestingPro analysis.

The upcoming "F1 The Movie" from Apple (NASDAQ:AAPL) Original Films, with a production budget exceeding $200 million, represents "another marketing coup" for the racing organization, according to Benchmark. The film is scheduled for release on June 25 overseas and June 27 domestically.

Benchmark believes the movie will complement Formula One’s fan awareness generated by the "Drive to Survive" series and enhance its "viral growth popular culture presence" for teams and drivers. The production involves Jerry Bruckheimer Films, Brad Pitt’s Plan B, director Joseph Kosinski, and F1 champion Lewis (JO:LEWJ) Hamilton.

Apple’s involvement in the film project demonstrates "F1’s global relevance" and serves as "an enhancement to the tech company’s critical consumer brand," which Benchmark described as "a major component of its $3 trillion market valuation." Analysts maintain a Strong Buy consensus on FWONA, with price targets ranging from $95 to $105. For deeper insights into Formula One’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes 12 additional ProTips and extensive financial metrics.

In other recent news, Liberty Media Corporation reported significant developments. The company announced that it has secured $14.2 billion in future revenue under contract, highlighting its strong market position. Additionally, Liberty Media is progressing with the integration of its MotoGP acquisition, planning a 22-race calendar for 2025. The U.S. market shows substantial growth, with ESPN viewership up 45%, indicating increased fan engagement. Liberty Media has also entered into forward contracts with several financial institutions to potentially deliver shares of Live Nation Entertainment (NYSE:LYV), a move linked to the planned spin-off of Liberty Live Group into a new company, Liberty Live Holdings, Inc.

Bernstein SocGen Group recently initiated coverage on Liberty Media, assigning a Market Perform rating with a price target of $105, suggesting a 9% upside potential. Analysts highlighted the company’s unique sports assets and growth opportunities, such as the expansion of the Paddock Club and a potential increase in F1 media rights. The forward contracts are designed to provide liquidity for the spin-off, with Liberty Media’s beneficial ownership in Live Nation remaining unchanged at approximately 30%. The forward contracts could yield prepayment amounts up to $1.15 billion for Liberty Live Holdings.

These developments reflect Liberty Media’s strategic initiatives and market growth, with a focus on innovation and fan engagement. The company continues to drive momentum at Formula One, with an emphasis on sustainable fuel and hybrid technology for future regulations. Liberty Media’s recent earnings call highlighted its positive financial performance and strategic outlook, underscoring its robust position in the market.

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