Liberty Media Group (NASDAQ:LMCA) recent $8 billion-acquisition of Formula One is transformative

Liberty Media Group (NASDAQ:LMCA) shares rocketed more than 16%. The media and entertainment company was upgraded to buy from neutral at Citigroup. Citi analyst Jason Bazinet said Liberty’s recent $8 billion-acquisition of Formula One is transformative. At an estimated value of $12 billion, Bazinet wrote Formula One was a trophy asset. “The equity will migrate from a story to a tax-advantaged, levered equity return story,” Bazinet wrote in a note to clients. Along with the upgrade, he raised his price target on Liberty Media to $32 from $22. Liberty Media shares are up more than 50% in the last three months, outperforming the S&P 500 Index SPX, -1.48% which is up 2%.

Liberty Media Equity Analysis

Liberty Media Group (NASDAQ:LMCA) opened trading today as $27.83 and is trading in the range of 24.15-28.35 today. Liberty Media current market cap stands at $9.31 Billion.

Liberty Media is currently covered by 12 Wall Street analysts.  The mean target price is $28.81 according to First Call.  This presents a solid upside to the current price of the equity.  The Mean Recommendation sits at 2.2 which is based on 2 Strong buy, 6 Buy and 4 Hold ratings.

The most recent analyst actions consisted of Citigroup upgrading the stock on September 13^th.

The current quarter EPS consensus estimate is -0.38 with revenue estimates of 5.21M.  Sales are expected to drop at a 99.60% rate. Liberty Media reported actual earnings last quarter of 0.04 which beats the -0.32 consensus estimate, a 112.50% surprise.

Corporate Profile

Liberty Media Corporation (Liberty) owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. Through its subsidiaries and affiliates, the Company principally operates in North America. Its principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and the Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company operates through two segments: SIRIUS X, and corporate and other. SIRIUS XM transmits its music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through its approximately two satellite radio systems. SIRIUS XM has approximately 29.6 million subscribers. Its corporate and other segment includes its consolidated subsidiary, Braves Holdings.