Palantir shares rise 5% premarket as AI-fueled demand powers annual guidance raise
On Friday, Guggenheim analyst Curry Baker increased the price target for Liberty Media Corp-Liberty Formula One (NASDAQ:FWONA) to $102.00, up from the previous $92.00, while maintaining a Buy rating on the stock. With a current market capitalization of nearly $21 billion and trading at $84.41, InvestingPro analysis indicates the stock is trading at premium valuations, with notably high earnings and EBITDA multiples. The adjustment comes after the company posted its fourth-quarter results for 2024, which showed revenues of $1,167 million and adjusted OIBDA of $200 million. These figures fell short of Guggenheim’s estimates of $1,346 million in revenue and $269 million in adjusted OIBDA. Despite the quarterly miss, InvestingPro data shows impressive trailing twelve-month revenue of $3.7 billion, representing 35.3% growth, with an EBITDA of $787 million.
The lower than expected results were attributed mainly to disappointing performances at the Las Vegas Grand Prix in its second year. However, management anticipates a positive turn in the event’s third year. Guggenheim sees multiple potential positive catalysts for the company, including the upcoming U.S. media rights renewal, a favorable Concorde Agreement that could give Formula One more leverage, promoter renewals in Europe potentially leading to more races outside the continent, and growing sponsorship momentum for 2025.
The next significant event for Liberty Media is the start of the 2025 Formula One season on the weekend of March 13th in Melbourne, Australia. Despite reducing the outlook for the Las Vegas Grand Prix, Guggenheim has adjusted its 2025 OIBDA forecast to $963 million from the previous estimate of $1,010 million. The revised price targets for Liberty Media’s FWONK and FWONA shares are now set at $102 and $94, respectively, up from the former targets of $92 and $86. According to InvestingPro, which maintains a GOOD financial health score for the company, analysts maintain a Strong Buy consensus on the stock. Subscribers can access the comprehensive Pro Research Report for deeper insights into Liberty Media’s financial health and growth prospects.
In other recent news, Liberty Media Formula One Corp reported a 6% revenue growth for 2024, largely driven by increased sponsorship deals and fan engagement. The company noted a 10% year-over-year increase in sponsorship revenue, highlighting its successful financial performance despite facing operational challenges, such as the underperformance of the Las Vegas Grand Prix. Liberty Media Formula One is also in the process of acquiring Dorna, the company behind MotoGP, with plans to expand the MotoGP calendar to 22 races, including new tracks in Hungary and a return to the Czech Republic. The company has been focusing on media rights negotiations and is preparing for upcoming powertrain regulations in 2026. Liberty Media Formula One’s strategic initiatives include expanding its presence in the U.S. market and continuing its sponsorship growth. The company is committed to achieving net-zero emissions by 2030 and has been actively working on structural simplification to highlight the value of its Live Nation equity stake. Analyst discussions have not indicated any recent upgrades or downgrades for the company’s stock, but the firm remains focused on addressing operational challenges and leveraging strategic partnerships for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.