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Investing.com - Liberty Formula One (NASDAQ:FWONK) stock received initial coverage from BofA Securities on Monday, with analysts assigning a Neutral rating and a $110.00 price target, representing approximately 11% potential upside. According to InvestingPro data, the stock is currently trading near its 52-week high of $106.26, with a market capitalization of approximately $25 billion and a remarkable one-year return of 28%.
BofA Securities based its price objective on a roughly 31x multiple of its calendar year 2026 estimated free cash flow, which represents a significant premium to the media and entertainment comparison group.
The premium valuation reflects the value of Liberty Formula One’s high-quality intellectual property assets, its perception as a trophy asset, and visibility of top-line growth drivers for the foreseeable future, according to the research firm.
BofA Securities noted that Formula One’s operating company revenues have grown at an 11% compound annual growth rate since 2019, demonstrating strong execution over the past several years.
Despite these positive factors, the investment bank believes the risk/reward profile is more balanced at current price levels, as the strong performance is already priced into the shares.
In other recent news, Liberty Formula One has seen a series of updates from various financial analysts. CFRA initiated coverage with a Buy rating and a price target of $125, projecting earnings per share of $1.70 in 2025 and $2.15 in 2026, along with revenue forecasts of $4.3 billion and $4.8 billion for those years. Goldman Sachs reinstated coverage with a Buy rating and a $120 price target, citing potential revenue growth from sponsorships and operating leverage linked to the Concorde agreement in 2026. Bernstein SocGen Group maintained a Market Perform rating, raising its price target to $110, while noting the company’s strong brand and growth opportunities in the U.S. market.
Rosenblatt analysts also increased their price target to $107, maintaining a Buy rating, and highlighted potential growth from a pending Dorna/MotoGP acquisition, which could boost OIBDA by 30%. Bernstein previously maintained a $105 price target, emphasizing Liberty Formula One’s unique sports assets and fan engagement. These recent developments reflect a positive outlook from analysts regarding Liberty Formula One’s financial prospects and strategic initiatives.
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