Pivotal Research analyst Jeffrey Wlodarczak has reiterated their bullish stance on FWONK stock, giving a Buy rating on February 24.
Jeffrey Wlodarczak has given his Buy rating due to a combination of factors that suggest a promising future for Liberty Media Liberty Formula One. Despite a recent decline in stock value due to a tougher than expected Vegas promotion and concerns over broadcasting rights, Wlodarczak sees this as an opportunity for investors. The anticipated growth in advertising and sponsorship revenue, highlighted by a significant deal with LVMH, and the potential for an increased U.S. rights fee with major players like CMCSA and NFLX, contribute to a positive outlook.
Moreover, the expected improvements in the Las Vegas Grand Prix and the acquisition of MotoGP are likely to enhance the company’s profitability. The business model benefits from high EBITDA margins and strong free cash flow conversion rates, with the potential for further monetization. The entrance of internet streaming giants into sports rights bidding is also seen as a favorable trend, supporting the long-term value of FWONK as a core investment in the sports sector.
In another report released on February 24, Evercore ISI also reiterated a Buy rating on the stock with a $130.00 price target.
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