Liberty Media Liberty Formula One (FWONK) has received a new Sell rating, initiated by Wells Fargo analyst, Steven Cahall.
Steven Cahall has given his Sell rating due to a combination of factors including concerns over Liberty Media Liberty Formula One’s future revenue streams and profit margins. He anticipates that TV rights negotiations, particularly in the US, might not meet high expectations, which could impact long-term growth. The estimated annual revenue from TV rights is projected to be lower than the consensus, suggesting a potential shortfall compared to market predictions.
Additionally, Cahall highlights the pressure from team payments under the Concorde Agreement, noting a possible increase in team revenue share that could affect profits. While acknowledging the strength of the company, he points out that the current stock valuation might not fully reflect these potential challenges, suggesting a risk of derating if growth projections are not met. His analysis leads to a conservative price target and an Underweight rating, driven by the anticipated impact of upcoming contracts and agreements on financial performance.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FWONK in relation to earlier this year.