Latest news with #LibertyFormulaOne
CNBC
22-07-2025
- Business
- CNBC
Goldman recommends F1 racing stock, sees ‘outsized capital returns'
Investors seeking high returns on capital should look no further than Liberty Formula One , according to Goldman Sachs. The bank upgraded shares of the motorsport stock to a buy rating from hold. Analyst Stephen Laszczyk's price target of $120 represents a potential upside of 17% from the stock's Monday closing price. Shares of Liberty Formula One have rallied 12% this year. FWONK YTD mountain FWONK YTD chart In the Monday note, Laszczyk said that the company has a lot going for it. "High quality, execution based growth story with potential for outsized capital returns," he wrote. "We believe that Liberty Formula One, through its ownership of both Formula 1 and MotoGP racing leagues, offers investors a high quality way to gain exposure to the long-term secular growth trends in sports media as well as what we believe will become a strong capital returns story within media & entertainment." One of Liberty's big opportunities stems from the potential to deleverage its balance sheet over the next several years. "Our base case assumes that Liberty Formula One will maintain leverage at 2.5x by returning capital to shareholders via share repurchases," Laszczyk continued. "Under this scenario, we estimate that Liberty Formula One could return $6.2B to shareholders by 2030E, or ~25% of current market capitalization." Meanwhile, the analyst also sees upside to analyst consensus for Formula 1, writing that the Street seems to be underestimating the potential for increased monetization in the sponsorship category. This opportunity for Formula 1 to grow revenue faster than consensus expectations could last through 2028. Another catalyst comes from opportunity for growth at MotoGP, the foundation for Grand Prix motorcycle racing. Laszczyk believes that Liberty could similar meaningfully grow revenue in the medium-to-long term following a period of re-positioning and investment. "In our view, similar to how Liberty took 2+ years to start building momentum with partners for F1, we expect the MotoGP's growth story to play out over the medium-to-long term rather than provide a near-term catalyst for segment growth," he wrote. "MotoGP's clearest path for execution against improving race monetization will be via the globalization and possible expansion of its race calendar."
Yahoo
26-06-2025
- Business
- Yahoo
Bernstein Maintains 'Market Perform' Rating on Formula One Group (FWONK) on Strong Brand and US Market Growth Opportunities
Formula One Group (NASDAQ:FWONK) is one of the 11 best performing Warren Buffett stocks in 2025. On June 18, Bernstein SocGen Group maintained its 'Market Perform' rating and $105.00 price target on Formula One Group (also known as Liberty Formula One) stock. Photo by shen liu on Unsplash Bernstein cited several company strengths that support its assessment, including unique sports assets, strong brand recognition, demonstrated fan engagement, and multiple avenues for growth. The analysts also highlighted the substantial growth opportunity for Formula One in the US market. They view it as a multi-year rather than a quarterly growth prospect. Bernstein also pinpointed specific growth opportunities, such as expanding the 'superfans via Paddock Club' as a key part of the core offerings. Additional areas include the expected significant increase in F1 media rights next year, short-term stability coupled with long-term potential in race promotion, and a consistent flow of new sponsorship opportunities. Also, integrating Dorna's MotoGP business is expected to deliver 'margin-accretive growth,' though Bernstein cautioned that it 'will require some time to scale.' Formula One Group (NASDAQ:FWONK) is a media and entertainment company with commercial rights to the FIA Formula One World Championship, the world's premier motor racing competition. It generates revenue through race promotion, media rights, sponsorships, and hospitality services. The company also operates support series like Formula 2, Formula 3, and F1 Academy. While we acknowledge the potential of FWONK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
