Citi maintains Buy rating on Liberty Media Corp-Liberty Formula One with $77 target
On Thursday, Citi reaffirmed its Buy rating on shares of Liberty Media Corp-Liberty Formula One (NASDAQ:FWONA), with a consistent price target of $77.00. The firm’s decision follows an update to their financial model, which now includes the company’s second-quarter results for 2024 and a revised outlook.
The updated model resulted in a slight decrease in the adjusted EBITDA forecast for Liberty Media Corp-Liberty Formula One. Despite this minor adjustment, the firm’s revenue expectations for the company have increased. The analyst from Citi noted that the changes were modest and slightly higher, respectively.
In light of the recent financial data and outlook revision, Citi chose to maintain its Buy rating and price target for the company’s stock. The analyst’s statement emphasized the firm’s commitment to the previously set target price, indicating a continued positive perspective on the stock’s potential.
Liberty Media Corp-Liberty Formula One is a company that holds ownership interests in Formula One, a global motorsport brand known for its prestigious racing events.
The stock performance and financial health of the company are closely watched by investors and analysts alike, as they can reflect broader trends in the sports and entertainment industry.
In other recent news, Liberty Media Corporation reported its Q2 2024 earnings, revealing growth plans and strategic updates. The company is nearing the completion of its merger with SiriusXM, expected to close on September 9, following approvals from the SEC and FCC.
SiriusXM maintains a solid financial position, with consistent EBITDA and plans for future free cash flow growth. The Formula One Group, a subsidiary of Liberty Media, reported a 29% increase in revenue and a 35% increase in OIBDA year-to-date, driven by successful partnerships and sponsorship deals.
The company’s MotoGP acquisition is on track to close by year-end, with necessary regulatory filings already in place. Live Nation, another subsidiary, experienced a 5% rise in concert attendance and a 21% increase in AOI.
The Atlanta Braves continue to perform well with a 90% season ticket renewal rate for 2025. These are among the recent developments in the company’s diverse portfolio, with all subsidiaries actively pursuing growth and experiencing positive outcomes.
InvestingPro Insights
As investors consider Citi’s reaffirmed Buy rating on Liberty Media Corp-Liberty Formula One (NASDAQ:FWONA), it’s important to look at the company’s financial health and market performance through additional lenses. According to InvestingPro data, Liberty Media Corp-Liberty Formula One boasts a market capitalization of $16.36 billion, with a significant revenue growth of 43.2% in the last twelve months as of Q2 2024. This robust growth is complemented by a strong gross profit margin of 30.74%, showcasing the company’s ability to efficiently manage its cost of goods sold relative to its sales.
While the company is trading at a high earnings multiple with a P/E ratio of 64.82, analysts predict profitability this year, as evidenced by the company’s positive performance over the last twelve months. This aligns with Citi’s optimistic view and may reassure investors about the stock’s potential. Moreover, Liberty Media Corp-Liberty Formula One’s liquid assets exceed its short-term obligations, suggesting financial stability in meeting its immediate liabilities.
For those seeking a deeper analysis, there are 10 additional InvestingPro Tips available, including insights on the company’s moderate level of debt and valuation multiples. Interested investors can explore these further to gain a comprehensive understanding of Liberty Media Corp-Liberty Formula One’s financial outlook. Discover more at InvestingPro’s dedicated page for FWONA: https://www.investing.com/pro/FWONA.
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