Liberty Media Formula One stock price target raised by Guggenheim to $110

Published 22/07/2025, 12:02
Liberty Media Formula One stock price target raised by Guggenheim to $110

Investing.com - Guggenheim raised its price target on Liberty Media Corp-Liberty Formula One (NASDAQ:FWONA) to $110.00 from $95.00 while maintaining a Buy rating. The stock, currently trading at $93.1, has shown impressive momentum with a 29% return over the past year and is approaching its 52-week high of $96.4. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The price target increase follows Liberty Media’s completed acquisition of MotoGP on July 3, which Guggenheim has now incorporated into its financial model as a separate segment. The firm projects MotoGP will generate $573 million in revenue and $199 million in OIBDA for 2026.

At closing, Liberty Media expects pro forma Formula 1 leverage to be under 3.5x, while Dorna (MotoGP) leverage will be just below 5.5x, according to Guggenheim’s analysis.

Guggenheim cited several positive factors driving momentum for Formula 1 in the second half of 2025, including the solid performance of the F1 movie ($461 million global box office), U.S. ratings up 10% year-over-year, reports of a significant Apple (NASDAQ:AAPL) bid for domestic rights, and a new Concorde agreement for next year.

The firm also highlighted Liberty Media’s new ticket strategy for Las Vegas, additional cost reductions, and strong sponsorship momentum as contributing factors to its more optimistic outlook.

In other recent news, Liberty Media Corp-Liberty Formula One has seen several notable developments. Guggenheim reiterated its Buy rating with a $95.00 price target, highlighting record viewership for the Canadian Grand Prix, which reached 1.9 million U.S. viewers. Additionally, Formula 1 announced an extension of the Circuit Gilles-Villeneuve’s presence on the racing calendar through 2035. Benchmark also maintained a Buy rating with a $102.00 price target, citing Formula One’s global growth momentum and increasing social media presence. Meanwhile, Bernstein SocGen Group initiated coverage with a Market Perform rating and a $105 price target, pointing to the company’s unique sports assets and growth opportunities in media rights and sponsorships.

Liberty Media Corp has entered into forward contracts for Live Nation shares through its subsidiary LN Holdings 1, LLC. These contracts involve delivering up to 10,488,960 shares or a cash equivalent by 2027, as part of a strategic move related to the anticipated spin-off of Liberty Live Group into Liberty Live Holdings, Inc. The contracts aim to provide liquidity for managing 2.375% exchangeable senior debentures due in 2053. These recent developments underscore Liberty Media’s strategic initiatives and ongoing growth in the sports and entertainment sectors.

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