In a report released yesterday, Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on Liberty Media Liberty Formula One (FWONK – Research Report), with a price target of $125.00.
Jeffrey Wlodarczak’s rating is based on the strong momentum observed in Liberty Media’s Formula One business, which is supported by positive trends in attendance, engagement, sponsorship, and advertising. The anticipated acquisition of MotoGP, expected to close in July, is seen as a catalyst that could significantly boost the organic growth rate of Formula One. The optimism is further fueled by the potential for increased media rights deals and a simplified new Concorde agreement, which are expected to enhance the monetization of the F1 product.
Moreover, Wlodarczak highlights the strategic advantages of Liberty Media’s control over a rare sports asset with high barriers to entry and a durable global business model. The company’s ability to improve the F1 product and its monetization is evident, with high EBITDA margins and free cash flow conversion rates. The entrance of major internet streaming players into the sports rights bidding arena is expected to support rights fees, while the acquisition of MotoGP is likely to enhance the core F1 business outlook. Despite some risks, such as potential MotoGP deal approval challenges and economic uncertainties, the overall outlook for Liberty Media’s Formula One remains robust, justifying the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $110.00 price target.
FWONK’s price has also changed moderately for the past six months – from $80.540 to $93.540, which is a 16.14% increase.