Formula One Analyst Says Investor Fears Over Recession Impact Unfounded, Upgrades Stock: Retail’s Bullish
Seaport said Formula One was fairly insulated from recessionary effects since most of its revenue streams are contracted.
Formula One Group (FWONK) stock is in focus after Seaport Research upgraded the motorsports company's shares.
Seaport upgraded Formula One stock to ‘Buy’ from ‘Neutral’ with a $96 price target, TheFly reported, The price target implies an upside potential of about 12% from the current levels.
Latest Videos
Analysts at the firm opined that the stock has become oversold due to tariff and geopolitical concerns about a slowdown in consumer spending. They also remained wary about the potential loss of one of the bidders for a near-term media rights renewal.
Seaport pointed out that Formula One was fairly insulated from recessionary effects since most of its revenue streams are contracted. The firm sees the global demand for unique premium live experiences, constructive sponsorship growth and competition for Grand Prix races as constructive for Formula One.
Seaport’s upgrade comes close on the heels of a bullish opinion by another sell-side firm. JPMorgan analysts upped the price target for the stock in early March and maintained an ‘Overweight’ rating.
JPMorgan said there is high visibility into the company’s revenue and earnings before interest, taxes and depreciation (EBITDA) acceleration for 2025 due to the sponsorships. It expects the company’s attractive growth to continue into the fiscal year 2026 with updated race promotion contracts and a new U.S. rights deal.
The firm also predicted upside to margins with the next Concorde agreement.
On Stocktwits, retail sentiment toward Formula One stock stayed ‘extremely bullish’ (78/100) and the message volume was ‘low.’
A bullish watcher expressed intention to buy Formula One stock, premised on the imminent start of the F1 championship.
Another user said the stock would run back to the $100 level and continue to print multiple highs for the rest of 2025.
Formula One stock has lost over 7% year-to-date, although it is up 23% over the year. The stock has traded in a 52-week range of $64.37-$102.33.
The TipRank-compiled consensus stock price target for Formula One is $107.67, suggesting upside potential of over 25%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.