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Cautious Outlook on Liberty Media: Sell Rating Amid MotoGP Acquisition and Media Rights Uncertainty

Cautious Outlook on Liberty Media: Sell Rating Amid MotoGP Acquisition and Media Rights Uncertainty

In a report released today, Steven Cahall from Wells Fargo maintained a Sell rating on Liberty Media Liberty Formula One, with a price target of $87.00.

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Steven Cahall has given his Sell rating due to a combination of factors affecting Liberty Media Liberty Formula One. One of the primary reasons is the recent acquisition of MotoGP, which, while potentially boosting earnings, is not expected to command as high a trading multiple as Formula One due to its more niche appeal. This acquisition has been factored into the valuation, but Cahall remains cautious about its overall impact on the company’s financial outlook.
Another significant factor is the uncertainty surrounding the renewal of media rights, particularly in the US. The potential for a less favorable renewal deal poses a risk to future revenue growth. Additionally, Cahall points out that the stock is currently valued at a high multiple compared to its peers, which, combined with lower expected earnings growth, suggests that the stock may be overvalued. These elements contribute to his recommendation to sell.

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