Key TakeawaysJefferies has launched coverage of Liberty Formula One (FWONK) with a Buy recommendation and $115 price objectiveTrading at $94.95, the price target suggests approximately 21% potential appreciation from recent levelsThe Apple TV agreement in the U.S. is projected to generate approximately $55 million per year in media rights through 2030MotoGP represents an overlooked opportunity, as F1 currently produces about 10 times its sponsorship incomeThe firm anticipates revenue growth from $4.73 billion in 2025 to $5.84 billion in 2028, while margins expand from 23.8% to 27.2%Jefferies has launched coverage of Liberty Formula One (FWONK) with a Buy recommendation and established a $115 price objective, representing significant upside from the current trading price of $94.95. The target price suggests roughly 21% potential appreciation from the stock’s most recent closing level.Liberty Media Corporation, FWONKJefferies analyst Anthony Berni characterized FWONK as a “high-quality media and consumer experiences business” focused on wealthy demographics. The investment bank assigns a valuation of 1.6 times enterprise value to OIBDA growth, positioning this as an attractive entry point for investors.With a market capitalization of $23.6 billion, the company posted $4.02 billion in trailing twelve-month revenue, reflecting 8% year-over-year expansion. Jefferies anticipates revenue will reach $5.84 billion by 2028.The investment thesis centers on three key drivers: capital-efficient expansion through media rights and sponsorship deals, structural advantages in team payment negotiations, and value creation from the MotoGP transaction.Apple TV Partnership Presents Undervalued Revenue OpportunityJefferies identified the Apple TV collaboration as one of the most overlooked catalysts for FWONK. This U.S.-focused agreement provides Formula One with direct access to Apple TV’s subscriber base exceeding 20 million users.The investment bank projects this partnership will contribute approximately $55 million in annual media-rights income through 2030. This figure could expand substantially if Apple pursues global rights agreements.Proprietary research conducted by Jefferies indicates fan engagement metrics have strengthened since the partnership launched. Enhanced upfront compensation is also anticipated to bolster near-term media rights performance.Although Apple TV’s overall reach is more limited than ESPN’s, Jefferies contends the platform’s subscriber profile aligns closely with Formula One’s affluent target audience. This demographic alignment enhances the partnership’s strategic value beyond simple viewership metrics.MotoGP Acquisition Offers Significant Monetization PotentialBerni emphasized the substantial monetization disparity between F1 and MotoGP operations. Formula One currently generates approximately five times MotoGP’s media-rights income, six times its race-promotion revenue, and 10 times its sponsorship earnings, despite commanding only about double the worldwide fan following.This performance gap, according to Jefferies’ analysis, represents a substantial value creation opportunity as FWONK implements its proven Formula One strategy across the MotoGP platform.The MotoGP transaction, coupled with the divestiture of Liberty Live and Quint assets, has transformed FWONK into a streamlined entity concentrated on two premier motorsport franchises.Jefferies projects adjusted OIBDA margins will expand from 23.8% to 27.2% through 2028, powered by the capital-light business model and operational efficiencies.The firm also anticipates free cash flow conversion exceeding 70%, which should enable accelerated debt reduction. Net leverage is expected to decline below 1x by the conclusion of 2028, down from approximately 3.8x following the MotoGP purchase.FWONK’s latest quarterly performance fell short of analyst expectations. Revenue of $934 million trailed the $956.93 million consensus estimate, while adjusted earnings of $0.24 per share missed the $0.2551 projection. Management attributed the shortfall to race-schedule timing differences.Guggenheim increased its price objective on the shares from $125 to $134 after those results, reaffirming its Buy stance and highlighting robust sponsorship trends. Liberty Media separately disclosed a $600 million convertible senior notes issuance, with provisions for an additional $90 million.The post Jefferies Launches Liberty Formula One (FWONK) Coverage with Bullish $115 Price Target appeared first on Blockonomi.