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Investing.com - Liberty Formula One (NASDAQ:FWONK) stock received its initial coverage from BofA Securities on Monday, with analysts assigning a Neutral rating and setting a $110.00 price target. The company, currently valued at approximately $25 billion, has shown strong momentum with a 28% return over the past year according to InvestingPro data.
The price target represents approximately 11% potential upside from current levels, according to BofA Securities analyst Brent Navon, who initiated the coverage.
BofA’s price objective is based on approximately 31 times the firm’s calendar year 2026 estimated free cash flow multiple, which represents a significant premium to the media and entertainment comparison group.
The premium valuation reflects "the value of high-quality IP assets, perception as a trophy asset and visibility of top-line growth drivers for the foreseeable future," according to the research note.
BofA Securities believes the risk/reward profile is "more balanced at current levels" as the strong execution over recent years is already priced into the shares, noting that operating company revenues have grown at an 11% compound annual growth rate since 2019.
In other recent news, Liberty Formula One has been the focus of several analyst reports. CFRA has initiated coverage with a Buy rating and set a price target of $125, projecting earnings per share of $1.70 in 2025 and $2.15 in 2026, alongside revenue forecasts of $4.3 billion and $4.8 billion for those years. Goldman Sachs has also reinstated coverage with a Buy rating and a $120 price target, citing near-term revenue growth and operating leverage as factors for its positive outlook. Meanwhile, Bernstein SocGen Group adjusted its price target to $110 from $105 while maintaining a Market Perform rating, driven by high-end estimates for North American media rights. BofA Securities has started coverage with a Neutral rating and a $110 price target, reflecting an 11% potential upside based on future cash flow estimates. Additionally, Bernstein has maintained its Market Perform rating and $105 price target, emphasizing the company’s unique sports assets and growth opportunities in the U.S. market.
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