Understanding Liberty Media Liberty Formula One’s Risk Factors


This article was originally published on TipRanks.com

Liberty Media Liberty Formula One (FWONA) is a part of the Colorado-based Liberty Media Corporation family, which also includes SiriusXM and Braves.

With this in mind, we used TipRanks to take a look at the latest financial performance and newly added risk factors for Liberty. (See Top Smart Score Stocks on TipRanks)

Q3 Financial Results

Liberty reported revenue of $3.1 billion for Q3 2021, against $2.7 billion in the same quarter last year. The SiriusXM unit contributed $2.2 billion, Formula One business accounted for $668 million, and Braves brought in $234 million.

Liberty’s SiriusXM and Formula One units recently made $98 million and $47 million in stock repurchases, respectively. Liberty has $622 million remaining under its current repurchase program. (See Liberty Media Liberty Formula One stock charts on TipRanks).

Risk Factors

According to the new TipRanks Risk Factors tool, Liberty’s main risk category is Finance and Corporate, representing 37% of the total 108 risks identified for the stock. It recently added one new risk factor under the Production category, which represents 10% of its total risks.

The company informs investors that its SiriusXM business is experiencing a shortage of components used in its satellite radios because of the constrained global chip supply. At the same time, automakers that include SiriusXM satellite radios in their vehicles are also experiencing chip shortages which have led some to reduce or stop production. Therefore, Liberty cautions that the global chip shortage may continue to adversely affect SiriusXM’s business, especially its subscriber acquisition efforts.

The Finance and Corporate risk factor’s sector average is 40%, compared to Liberty’s 37%. The Production risk factor’s sector average is 13%, compared to Liberty’s 10%.

Analysts’ Take

Evercore ISI analyst Vijay Jayant recently reiterated a Buy rating on Liberty Media Liberty Formula One stock with a price target of $72. Jayant’s price target suggests 26.23% upside potential.

Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average Liberty Media Liberty Formula One price target of $62.50 implies 9.57% upside potential to current levels.

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