Liberty Formula One stock maintains Buy rating at Guggenheim after strong Q2

Published 14/08/2025, 16:12
Liberty Formula One stock maintains Buy rating at Guggenheim after strong Q2

Investing.com - Guggenheim has reiterated its Buy rating and $120.00 price target on Liberty Formula One (NASDAQ:FWONK) following the company’s second-quarter 2025 financial results. According to InvestingPro data, the stock is trading near its 52-week high of $96.40, with analysts maintaining a Strong Buy consensus and targets ranging from $99 to $110.

Liberty Formula One reported revenue of $1,341 million and adjusted OIBDA (Operating Income Before Depreciation and Amortization) of $369 million for Q2 2025, exceeding Guggenheim’s estimates of $1,253 million and $297 million, respectively. The company’s trailing twelve-month EBITDA stands at $774 million, with InvestingPro analysis showing strong financial health metrics and expected net income growth for the year.

The research firm attributed the stronger-than-expected performance to higher revenue from an additional race compared to the previous year, favorable race mix, lower relative team payments, and a one-time payment related to F1: The Movie.

Guggenheim has raised its 2025 OIBDA forecast for Liberty Formula One to $1,041 million from $1,014 million previously, primarily based on the Q2 results, and noted that its model now includes MotoGP results starting in the third quarter.

The firm highlighted several positive factors for Liberty Formula One’s second-half outlook, including the solid box office performance of the F1 movie ($576 million globally), U.S. ratings up 12% year-over-year, reports of a significant Apple bid for domestic rights, a new Concorde agreement for next year, a revised ticket strategy for Las Vegas, and strong sponsorship momentum. With a projected revenue growth of 17% for FY2025, the company’s outlook appears promising. For deeper insights into Liberty Formula One’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Liberty Media Corporation reported a significant revenue increase for its Formula One Group during the second quarter of 2025, alongside the completion of its MotoGP acquisition. TD Cowen raised its price target for Liberty Media Formula One to $105, maintaining a Buy rating due to the company’s strong performance, with revenue and Operating Income Before Depreciation and Amortization exceeding expectations. Meanwhile, Bernstein reiterated its Market Perform rating with a price target of $110, acknowledging the solid quarterly results but expressing concerns over cost control and the financials of MotoGP. The earnings call from Liberty Media emphasized strategic initiatives and future guidance, focusing on growth potential in MotoGP and continued expansion in Formula One. These developments highlight the company’s active engagement in mergers and acquisitions, which have been a focal point in recent updates. Despite the positive financial results, analysts have pointed out areas of concern regarding the company’s business model and further M&A activities. Liberty Media’s recent activities indicate a strategic focus on expanding its motorsport portfolio and addressing financial performance challenges.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.