Research Alert: CFRA Reiterates Buy Opinion On Shares Of Formula One Group
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our target price at $110 applying a forward TEV/EBITDA of 25.5x compared to the three-year historical average at 30.7x and the five-year historical average at 32.8x. We are reducing our 2026 EPS estimate by $0.15 to $1.55 and keep our 2027 estimate at $2.15, on respective revenue projections of $4.7B (from $48.5B) and $5.2B (unchanged). Our 2026 estimates take into account that Formula 1 canceled races in Bahrain and Saudi Arabia and moved the Qatar Grand Prix to November for MotoGP, subject to market conditions with the Iran-U.S. war. We like that the company announced the return of the Turkish Grand Prix starting in 2027 in a new multi-year agreement. We are positive on the opportunities to expand MotoGP's commercial reach for sponsorship over time. In our opinion, the Formula 1 global brand will endure wartime conditions in the Mideast, and we expect to see FWON.K benefit from its growing appeal in these parts of the world. Clearly, a risk to the downside is an extended Iran-U.S. war.
