Liberty Formula One stock initiated with Buy rating at CFRA, $125 target

Published 22/07/2025, 20:36
Liberty Formula One stock initiated with Buy rating at CFRA, $125 target

Investing.com - CFRA initiated coverage on Liberty Formula One (NASDAQ:FWONK) with a Buy rating and a $125 price target on Tuesday. The stock, currently trading near its 52-week high of $106.26, has delivered an impressive 31% return over the past year. According to InvestingPro analysis, the company appears to be trading above its Fair Value, with analysts’ targets ranging from $87 to $140.

The research firm set its target based on a forward TEV/EBITDA multiple of 27.1x its 2026 EBITDA estimate of $1.24 billion, compared to the three-year historic average of 28.8x. CFRA projects earnings per share of $1.70 in 2025 and $2.15 in 2026, with revenue forecasts of $4.3 billion and $4.8 billion for those years.

Liberty Formula One has grown its revenue from $1.78 billion to $3.7 billion since Liberty Media acquired the racing series in 2017. This growth has been driven by U.S. market expansion including races in Miami and Las Vegas, digital transformation, Netflix (NASDAQ:NFLX)’s "Drive to Survive" series, and an increase to 24 races per season from 20. With a market capitalization of $25.8 billion and a strong financial health score rated as "GOOD" by InvestingPro, the company maintains a solid balance sheet with a comfortable current ratio of 2.54.

The recent Formula 1 movie starring Brad Pitt has further expanded market awareness, grossing nearly $500 million since its July release. The company also completed a $4.5 billion acquisition of MotoGP on July 3, 2025, marking a significant consolidation in motorsport.

CFRA identified potential competitive risks including declining ownership, team departures, and competition from motorsport alternatives like IndyCar and NASCAR, though it noted these competitors remain U.S.-centric while Formula 1 maintains its position as a leading global brand. Discover 12 additional exclusive InvestingPro Tips and comprehensive financial analysis in our detailed Pro Research Report, available for over 1,400 US stocks.

In other recent news, Liberty Formula One has been the focus of several analyst updates. Goldman Sachs reinstated coverage on the company with a Buy rating and set a price target of $120. The firm highlighted near-term revenue growth and operational leverage as key factors in its positive outlook. Meanwhile, Bernstein maintained its Market Perform rating with a $105 price target, emphasizing Liberty Formula One’s unique assets and growth potential in the U.S. market. Rosenblatt also raised its price target to $107, maintaining a Buy rating. The analysts at Rosenblatt noted that their financial estimates have been updated, and they anticipate further growth, particularly with the expected approval of the Dorna/MotoGP acquisition. This acquisition could significantly impact Liberty Formula One’s OIBDA, potentially boosting it by 30%. These developments reflect a broad spectrum of perspectives on Liberty Formula One’s financial trajectory.

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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