Liberty Formula One stock rating reiterated at Buy by Guggenheim

Guggenheim maintained its Buy rating and $95.00 price target on Liberty Media Corp-Liberty Formula One (NASDAQ: FWONA) Wednesday, aligning with the broader analyst consensus of Strong Buy. Trading near its 52-week high of $95.33, the $22.59 billion market cap company has shown robust momentum. According to InvestingPro data, the firm cited several positive developments for the racing organization, including record viewership for the recent Canadian Grand Prix.

The Canadian Grand Prix set a new U.S. audience record Sunday on ABC, averaging 1.9 million viewers, up 6% from 1.8 million last year. This viewership growth complements the company’s solid financial performance, with revenue growing 2.48% over the last twelve months. Formula 1 also announced that the Circuit Gilles-Villeneuve will remain on the racing calendar through 2035, representing a four-year extension agreed upon with Octane Racing Group and the governments of Canada and Quebec.

U.S. television ratings for Formula 1 have increased 10% year-over-year through the first ten rounds of the 2024 season. The eleventh round will take place Sunday, June 29, in Austria at 9 a.m. on ESPN, with McLaren emerging as this year’s favorite team amid a competitive field that has kept the Drivers’ Championship tight between Piastri, Norris, Verstappen, and Russell. Want deeper insights? InvestingPro subscribers get access to 12+ exclusive ProTips and comprehensive financial analysis for FWONA.

Guggenheim identified multiple potential catalysts for Liberty Formula One, including continued sponsorship momentum evidenced by the multi-year PepsiCo (NASDAQ:PEP) Official Partnership announcement, which the firm estimates could be worth $25-$40 million per year based on past deals.

The firm also highlighted operating leverage benefits from a new Concorde Agreement, the upcoming U.S. media rights renewal, and a fresh go-to-market strategy for the Las Vegas Grand Prix along with additional cost optimization efforts.

In other recent news, Liberty Media’s Formula One Group reported robust performance for Q1 2025, securing $14.2 billion in future revenue under contract. Despite some challenges in race promotion and media rights revenue due to variations in the race calendar, the company emphasized its strong market position and growth in the U.S. market, with ESPN viewership up 45%. Liberty Media also announced strategic moves involving forward contracts for Live Nation shares, as part of a planned spin-off of its Liberty Live Group into a new entity, Liberty Live Holdings, Inc. This transaction will enable Liberty Media to manage its financial obligations effectively.

Benchmark reiterated its buy rating on Liberty Formula One stock, citing the global growth momentum of Formula One and the upcoming "F1 The Movie" as factors enhancing the sport’s cultural presence. Meanwhile, Bernstein SocGen Group initiated coverage of Liberty Media with a Market Perform rating, noting the company’s unique sports assets and growth potential, particularly with the anticipated increase in F1 media rights next year. The integration of Dorna’s MotoGP is also expected to contribute to margin-accretive growth.

These developments highlight Liberty Media’s ongoing strategic initiatives and market expansion efforts, reflecting a positive outlook from analysts and significant engagement in the sports entertainment sector.

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