Susquehanna starts Liberty Formula One, sees upside from MotoGP deal, live events

Investing.com -- Susquehanna initiated coverage of Liberty Formula One with a "Positive" rating and a $115 price target, pointing to strong growth prospects from rising global interest in Formula One racing, the pending acquisition of MotoGP, and broader momentum across sports and live events.

The firm said Liberty’s Formula One assets, including the 24-race global circuit and the self-promoted Las Vegas Grand Prix, have seen a surge in popularity, with total reach up about 90% since 2018 and U.S. viewership up 125%.

Susquehanna highlighted potential for further U.S. expansion and opportunities to internalize more league economics, noting the Las Vegas race as a model.

Liberty’s $4.3 billion deal to acquire an 86% stake in MotoGP, expected to close by June 30, 2025, is seen as a catalyst to replicate the success of the F1 turnaround, with the global motorcycle racing circuit offering favorable parallels and a more attractive team payment structure.

Susquehanna expects Liberty to apply its Formula One playbook to drive stronger growth and synergies from MotoGP.

The firm also noted that Liberty’s planned split-off of its Liberty Live assets in the third quarter of 2025 should simplify the company’s structure, eliminating the tracking stock format and reducing the implied holding company discount.

Susquehanna views sports and live events as among the most resilient forms of entertainment, citing their unique fan engagement and pricing power in an era of fragmented media consumption.

It warned, however, that a delay in the MotoGP acquisition could push Liberty Formula One shares down to $70.

Susquehanna’s $115 price target implies about 32% upside from current levels, based on its scenario analysis.