Liberty Formula One (FWONA) Receives Positive Analyst Coverage with a $115 Target

Liberty Formula One (FWONA, Financial) has attracted attention from Susquehanna analyst Joseph Stauff, who has started coverage on the stock with a Positive rating and set a price target of $115. The analyst noted that the company’s complex tracking stock structure, along with an anticipated major acquisition prior to its planned split-off in the third quarter, adds to the intricacies perceived by investors. Despite this complexity, Stauff believes these factors have kept the stock from being overly scrutinized, suggesting potential opportunities for investors.

Wall Street Analysts Forecast

Based on the one-year price targets offered by 7 analysts, the average target price for Liberty Media Corp (FWONA, Financial) is $96.43 with a high estimate of $102.00 and a low estimate of $91.00. The average target implies an upside of 21.14% from the current price of $79.60. More detailed estimate data can be found on the Liberty Media Corp (FWONA) Forecast page.

Based on the consensus recommendation from 7 brokerage firms, Liberty Media Corp’s (FWONA, Financial) average brokerage recommendation is currently 1.7, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Liberty Media Corp (FWONA, Financial) in one year is $90.03, suggesting a upside of 13.1% from the current price of $79.6. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Liberty Media Corp (FWONA) Summary page.

FWONA Key Business Developments

Release Date: February 27, 2025

• Attributed Cash and Liquid Investments: $2.6 billion at year-end, including $1.3 billion at F1 and $78 million at Quint.
• Total Debt: $2.9 billion, with $2.4 billion at F1 and $528 million at the corporate level.
• Revenue Growth: 6% increase in 2024, driven by additional races and new sponsors.
• Sponsorship Revenue: 10% increase year over year.
• Team Payments: 61.5% of pre-team adjusted OIBDA in 2024, down from 62.6% in 2023.
• Adjusted OIBDA Margin: Improved by nearly 70 basis points year over year.
• CapEx: $75 million in 2024, with $73 million at Formula One, including IT and track improvements.
• Future Revenue Contracted: $14.4 billion under multiyear agreements.
• F1 TV Subscribers: Increased by 15%.
• Social Media Followers: 97 million, up 38% year over year.
• Race Attendance: Over 6.5 million people attended races in 2024, a 9% increase over 2023.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Liberty Formula One Group (FWONA, Financial) reported a 6% revenue growth in 2024, driven by additional races and new sponsorships.
• The company has $14.4 billion in future revenue contracted under multiyear agreements, providing strong financial visibility.
• F1 TV subscribers increased by 15%, with plans to launch a new premium tier offering enhanced features.
• The Las Vegas Grand Prix, despite initial financial setbacks, has been a significant driver of F1’s growth in the Americas.
• Liberty Formula One Group (FWONA) is in a strong financial position with $2.6 billion in cash and liquid investments, and a leverage ratio of 1.3 times at year-end 2024.

Negative Points

• The Las Vegas Grand Prix missed internal expectations on revenue and OIBDA, primarily due to ticket sales underperformance.
• There was softness in certain hospitality offerings at the Las Vegas Grand Prix, impacting overall revenue growth.
• The Phase 2 regulatory process for the Dorna acquisition is ongoing, with a long stop date extended to June 30, 2025, indicating potential delays.
• The integration of the Las Vegas Grand Prix operations into the London team suggests challenges in local execution and cost management.
• Despite strong overall performance, the standalone event economics for the Las Vegas Grand Prix need improvement to meet original financial targets.