Deutsche Bank analyst Bryan Kraft believes Liberty Formula One’s acquisition of MotoGP is a “sound strategic move” that will leverage Formula One’s core capabilities and resources to continue MotoGP’s historically strong EBITDA and cash flow growth rate into the future. MotoGP should have a longer runway for growth than F1 currently has, if management’s thesis turns out to be correct, justifying a higher relative multiple, the analyst tells investors in a research note. The firm has a Hold rating on Liberty Formula One shares with a $73 price target.
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Read More on FWONA:
- M&A News: F1-Owned Liberty Media to Acquire MotoGP
- Liberty Media Expands Reach with Dorna Sports Acquisition
- Liberty Formula One to acquire Dorna Sports in EUR 4.2B transaction
- Liberty in exclusive talks to buy MotoGP for over EUR 4B, FT reports
- Liberty Formula One price target raised to $85 from $80 at Evercore ISI
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