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On Wednesday, Bernstein SocGen Group initiated coverage on Liberty Media Corp-Liberty Formula One (NASDAQ: FWONA), assigning a Market Perform rating. The analysts set a price target of $105, highlighting a 9% upside potential. The stock, currently trading near its 52-week high of $95.33, has demonstrated strong momentum with a 28% return over the past year.
The analysts noted the company’s unique sports assets and strong brand, emphasizing its demonstrated fan engagement and multiple growth avenues. They pointed to opportunities in expanding the Paddock Club for superfans and anticipated a significant increase in F1 media rights next year. The analysts also foresee stability in race promotion and a steady influx of new sponsorship opportunities. With a market capitalization of $23.8 billion and last twelve months EBITDA of $573 million, the company maintains a strong financial position, as reflected in its GOOD Financial Health score on InvestingPro.
The integration of Dorna’s MotoGP is expected to provide margin-accretive growth, although the analysts cautioned that it would take time to scale. They predict that the stock will perform in line with the broader market, with potential catalysts anticipated in 2027 and beyond. Discover 12 additional exclusive InvestingPro Tips and comprehensive valuation metrics in our detailed Pro Research Report, helping you make more informed investment decisions.
The valuation of Liberty Media is based on a 32x multiple, which is below the current consensus estimates. This valuation considers up-front dilution but does not include earnings uplift from the MotoGP acquisition. The analysis assumes a weighted average cost of capital of 8% and a terminal growth rate of 3%.
The initiation of coverage reflects Bernstein SocGen Group’s outlook on the company’s prospects in the U.S. market, as well as its long-term growth potential.
In other recent news, Liberty Media Corporation reported its financial results for the first quarter of 2025, showing a strong performance despite some challenges. The company secured $14.2 billion in future revenue under contract, emphasizing its solid market position. Liberty Media’s Formula One Group reported a decrease in race promotion, media rights, and sponsorship revenue due to variations in the race calendar, but highlighted significant growth in the U.S. market, with ESPN viewership up 45%. The company also announced variable forward contracts with several financial institutions for Live Nation shares, which are part of a strategic move to spin off Liberty Media’s Liberty Live Group into a separate entity, Liberty Live Holdings, Inc.
These forward contracts are designed to provide liquidity to manage debentures’ settlement, should the debenture holders choose to put them back to the company or exchange them for Live Nation stock or cash. Liberty Media’s ownership in Live Nation remains unchanged at approximately 30%. The contracts are subject to customary closing conditions and regulatory approvals. Additionally, Liberty Media is actively negotiating media rights, with a focus on the U.S. market, and anticipates leveraging team payments in 2026. The company is preparing for transformative regulations that focus on sustainable fuel and hybrid technology. These developments reflect Liberty Media’s ongoing strategic initiatives and market growth efforts.
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