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On Thursday, JPMorgan analysts increased their price target for Liberty Media Corp-Liberty Formula One (NASDAQ: FWONA) shares, boosting it to $105.00 from the previous target of $96.00. The firm also maintained an Overweight rating on the stock. Currently trading at $85.51, the stock has shown strong momentum with a 35.7% return over the past year. According to InvestingPro data, analyst consensus remains highly bullish with targets ranging from $94 to $102. The adjustment comes ahead of the new episodes of "Formula 1: Drive to Survive" releasing on Netflix (NASDAQ:NFLX) tomorrow, and the upcoming Formula 1 season beginning on March 14.
The analysts at JPMorgan have expressed confidence in the business outlook for the racing series, citing high visibility into revenue and EBITDA growth for 2025. This anticipated acceleration is primarily attributed to sponsorship deals. The company’s current EBITDA stands at $744 million, with revenue growing at 12.4% over the last twelve months. InvestingPro analysis indicates the company maintains good financial health with a score of 2.69 out of 5, despite currently trading above its calculated Fair Value. The firm’s outlook for the company remains positive, with expectations of continued attractive growth into 2026. This optimism is based on updated race promotion contracts and a forthcoming US rights deal, for which Formula 1 is believed to be in a strong negotiating position.
Furthermore, JPMorgan anticipates an upside to profit margins for Liberty Media Corp-Liberty Formula One, particularly with the next Concorde Agreement. The Concorde Agreement is a contract between Formula 1, the teams, and the Fédération Internationale de l’Automobile (FIA) that outlines the terms by which the teams race and the division of revenue.
The analyst’s statement provided insight into the rationale behind the price target increase. "With new episodes of Formula 1: Drive to Survive set to release on Netflix tomorrow, and the season set to begin on March 14, we take the opportunity to preview the business outlook for the racing series. Overall, we have high visibility into revenue and EBITDA acceleration for 2025 led by sponsorship," said the JPMorgan analyst.
They further elaborated on the future prospects, stating, "We expect attractive growth to continue in 2026 with updated race promotion contracts and a new US rights deal where F1 is well positioned into negotiations; we also see upside to margins with the next Concorde Agreement."
Liberty Media Corp-Liberty Formula One’s stock price will likely be watched closely by investors as the new Formula 1 season approaches and the company continues to negotiate key contracts that could influence its financial growth. With a market capitalization of $21.3 billion and strong revenue growth forecasts of 19% for FY2025, investors seeking deeper insights can access the comprehensive Pro Research Report available on InvestingPro, which provides detailed analysis of the company’s valuation, growth prospects, and financial health metrics.
In other recent news, Liberty Media Corp-Liberty Formula One has garnered attention from analysts and investors following its recent earnings report and strategic developments. The company reported a 6% revenue growth for 2024, driven by increased sponsorship deals and fan engagement, though the Las Vegas Grand Prix underperformed, impacting financial expectations. Guggenheim analysts responded by raising the price target for Liberty Media Formula (NASDAQ:FWONA) One to $102 from $92, maintaining a Buy rating despite the earnings falling short of their estimates. Benchmark analysts also reiterated a Buy rating with a price target of $102, citing the company’s global growth opportunities and the unique value of its sports assets.
The company reported revenues of $1,167 million and adjusted OIBDA of $200 million for the fourth quarter of 2024, which did not meet Guggenheim’s projections. Despite these challenges, Liberty Media Formula One is optimistic about future prospects, with management anticipating improvements in the Las Vegas Grand Prix’s third year and potential positive catalysts like the U.S. media rights renewal. The company plans to host 24 races in 2025 and is focusing on media rights negotiations, as well as expanding its presence in the U.S. market.
Analysts from both Benchmark and Guggenheim highlighted the company’s strategic initiatives and the potential for growth, emphasizing the importance of leveraging the Formula One platform to expand its reach. Liberty Media Formula One’s adaptability and strategic partnerships are seen as key to driving long-term shareholder value, despite the operational hurdles faced in recent events.
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