Guggenheim raises Liberty Formula One stock price target on MotoGP acquisition

Published 22/07/2025, 12:02
Guggenheim raises Liberty Formula One stock price target on MotoGP acquisition

Investing.com - Guggenheim raised its price target on Liberty Formula One (NASDAQ:FWONK) to $120.00 from $104.00 while maintaining a Buy rating following the company’s completed acquisition of MotoGP. The stock, currently trading at $93.1 and near its 52-week high of $96.4, has delivered a strong 29% return over the past year. According to InvestingPro data, analysts maintain a Strong Buy consensus on the company.

The research firm cited the July 3 completion of the MotoGP acquisition as the primary reason for the updated model, which now breaks MotoGP into a separate segment. Guggenheim projects $573 million in revenue and $199 million in OIBDA for this segment by 2026.

At closing, Liberty Formula One expects pro forma F1 leverage to be under 3.5x with Dorna (MotoGP) just below 5.5x, according to the analyst note.

Guggenheim also highlighted several positive factors for Formula 1’s business momentum in the second half of 2025, including the F1 movie’s strong box office performance ($154 million domestic, $461 million global), U.S. ratings up 10% year-over-year, reports of a significant Apple (NASDAQ:AAPL) bid for domestic rights, and a new Concorde agreement for next year.

Additional positive factors mentioned include a new ticket strategy for Las Vegas, cost reductions, and strong sponsorship momentum for the Formula 1 business.

In other recent news, Liberty Media Corp-Liberty Formula One has seen several noteworthy developments. The company completed its acquisition of MotoGP on July 3, which Guggenheim has incorporated into its financial model. Guggenheim projects that MotoGP will generate $573 million in revenue and $199 million in operating income before depreciation and amortization (OIBDA) by 2026. As a result, Guggenheim raised its price target for Liberty Media to $110.00 while maintaining a Buy rating. Additionally, Benchmark reiterated its Buy rating with a $102.00 price target, citing Formula One’s global growth momentum and increasing social media presence. Meanwhile, Bernstein SocGen Group initiated coverage with a Market Perform rating and a price target of $105, noting the company’s strong brand and fan engagement. Liberty Media also entered into forward contracts for Live Nation shares, involving up to 10,488,960 shares or a cash equivalent. These contracts, established with several financial institutions, have specific price terms and conditions extending into the first quarter of 2027. Furthermore, Formula One announced a four-year extension for the Circuit Gilles-Villeneuve to remain on the racing calendar through 2035.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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