Analyst Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on Liberty Media Liberty Formula One and keeping the price target at $135.00.
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Jeffrey Wlodarczak’s rating is based on Liberty Media’s strong third-quarter performance and promising future prospects. The company’s success is driven by exciting on-track results, increased attendance, and robust sponsorship and advertising revenues. The acquisition of MotoGP is expected to significantly boost Formula One’s growth, combining the leading four-wheel and two-wheel racing series.
Furthermore, Liberty Media is seen as a rare sports asset with high barriers to entry and a durable global business model. The company’s ability to enhance the Formula One product and its monetization potential is evident, with high EBITDA margins and free cash flow conversion rates. The entrance of major internet companies into the sports rights bidding arena is anticipated to support rights fees, and the continued consumer interest in sports experiences bodes well for the company’s future. As a result, FWONK is considered a core investment with a strong growth outlook and limited terminal value risk.
According to TipRanks, Wlodarczak is a 4-star analyst with an average return of 3.8% and a 52.62% success rate. Wlodarczak covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Liberty Media Liberty Formula One, and Charter Communications.
In another report released on October 21, Evercore ISI also maintained a Buy rating on the stock with a $124.00 price target.