Formula 1 stock target rose on Benchmark despite weak results by Investing.com

Analysts at the benchmark raised their price target on shares of Formula One Group ( FWONA ) to $81 from $77 in a note on Friday, extending the achievement to 2025 and maintaining a buy rating on the stock.

“The disciplined price target is outside the Benchmark’s growth relative to the S&P 500’s discounted cash flow approach and assigns no discrete premium to the value of F1’s sports shortfall,” the firm explained.

Despite financial results that fell short of expectations, Benchmark maintains its bullish rating on the stock.

They note that F1’s recent performance has been highlighted by increasingly competitive races, with seven different winners from four teams from fourteen races in 2024.

This generated significant fan engagement, resulting in 3.7 million attendees and record attendance at events such as the Canadian Grand Prix. In addition, TV audiences grew in key markets including the US, China, Australia, Canada, South Africa and the Middle East, with five US races achieving record viewing figures.

However, Benchmark notes that financial results were mixed. Formula One Group revenue, including the effects of the Quint acquisition, rose 36% to $988 million, slightly below Benchmark’s estimate of $1.01 billion. Adjusted OIBDA (EBITDA) rose 17% to $165 million, missing the consensus estimate of $227 million.

Excluding Quint, F1 operating income rose 20% to $871 million, with a modest 3% increase in adjusted OIBDA.

Benchmark says Liberty Media is also dealing with regulatory challenges, including a DOJ investigation into the rejection of Andretti Global as an 11th team.

The firm adds that despite these obstacles, Liberty Media CEO Greg Maffei has expressed confidence that F1 has not breached any antitrust regulations.
Meanwhile, Benchmark notes that the MotoGP transaction is progressing well, with regulatory approvals expected to be completed by the end of the year.