Steven Cahall, an analyst from Wells Fargo, maintained the Sell rating on Liberty Media Liberty Formula One (FWONK – Research Report). The associated price target was lowered to $80.00.
Steven Cahall has given his Sell rating due to a combination of factors impacting Liberty Media Liberty Formula One’s financial outlook. One significant concern is the complexity surrounding US media rights, where Cahall anticipates that the expected increase in average annual value (AAV) may not materialize as investors hope. This is compounded by the competitive landscape in media rights negotiations, which could lead to lower-than-expected outcomes for future deals.
Another factor influencing the Sell rating is the economic impact of the Las Vegas Grand Prix. Cahall estimates that this event was a considerable drag on the company’s operating income before depreciation and amortization (OIBDA) in 2024 and expects continued negative contributions until at least 2027. Additionally, while there is no anticipated degradation in team payments under the new Concorde Agreement, the overall revenue estimates for 2025 and 2026 have been revised downward, further supporting the cautious outlook. These elements collectively contribute to Cahall’s valuation of FWONK at $80 per share, which is below market expectations.
FWONK’s price has also changed moderately for the past six months – from $77.390 to $91.920, which is a 18.78% increase.