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Investing.com - Goldman Sachs has reinstated coverage on Liberty Formula One (NASDAQ:FWONK) with a Buy rating and a price target of $120.00, representing a potential 17% total return. The stock is currently trading near its 52-week high of $106.26, having delivered an impressive 31.32% return over the past year.
The firm cites four key reasons for its positive outlook, including near-term upside to Formula 1 revenue and adjusted OIBDA supported by sponsorship and operating leverage on team payments with the next Concorde agreement in 2026. With current revenue of $3.51B and a strong financial health score of "GOOD" according to InvestingPro, the company appears well-positioned for growth.
Goldman Sachs also points to medium-to-long term opportunities to improve monetization of MotoGP as the sport globalizes under Liberty Media’s ownership, providing investors exposure to long-term secular growth trends in sports media. The company maintains a healthy current ratio of 2.54, indicating strong liquidity to support its growth initiatives. For deeper insights into Liberty Formula One’s growth potential, InvestingPro offers 12 additional exclusive tips and comprehensive financial analysis.
The firm highlights the opportunity for Liberty Formula One to return approximately $6 billion, or about 25% of its current market capitalization, to shareholders by 2030.
Goldman Sachs believes the premium asset quality of Liberty Formula One, through its ownership of both Formula 1 and MotoGP racing leagues, supports the stock’s premium valuation.
In other recent news, Liberty Formula One has seen significant developments regarding its financial outlook and strategic expansions. Rosenblatt analysts have raised the company’s stock price target to $107, up from $102, while maintaining a Buy rating. This adjustment reflects updates to financial estimates, with expectations of a potential 11% increase in share value driven by core operating income growth. Additionally, the anticipated acquisition of Dorna’s MotoGP business is expected to boost operating income by 30%, pending approval from EU regulators.
Bernstein maintained its Market Perform rating with a $105 price target, highlighting the company’s unique sports assets and growth opportunities in the U.S. market. The firm noted the potential for a sizable increase in media rights next year and a steady pipeline of new sponsorship opportunities. The integration of MotoGP is projected to offer margin-accretive growth, although it may take time to scale. Both firms underscore the importance of growing race attendance and viewership metrics, which are reportedly on an upward trend. These factors collectively contribute to a positive outlook for Liberty Formula One in the near term.
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