Key Takeaways
- ESPN’s broadcast of the 2025 season attracted an unprecedented 1.3 million average U.S. viewers, while Apple TV reports significant streaming increases following its takeover of broadcast rights.
- Sean Diffley from Morgan Stanley identifies FWONK as his leading choice in the media and entertainment sector, setting a $120 target priceāapproximately 15% higher than current trading levels.
- Guggenheim elevated its price target from $116 to $124 while maintaining its Buy recommendation, pointing to strong sponsorship trends and Las Vegas race profitability.
- According to FactSet data, 15 out of 17 Wall Street analysts maintain Buy-equivalent ratings, with earnings per share projected to surge nearly 22% by 2027.
- The company completed its transformation from a Liberty Media tracking stock into a direct ownership equity structure, streamlining the investment thesis.
Liberty Formula One (FWONK) stock currently changes hands near $104.84, and the majority of Wall Street believes the upside potential remains intact. Analyst sentiment overwhelmingly favors buying the shares.
Liberty Media Corporation, FWONK
Over the past decade, F1 has constructed something exceptional: a globally recognized sports franchise that trades publicly and, according to institutional investors holding positions, continues to be under-exploited commercially.
The transformation began when Liberty Media acquired control in 2017. Prior to that acquisition, spanning from 1950 through approximately 2016, the motorsport series suffered from what one fund manager characterized as “significant mismanagement.” Liberty’s stewardship introduced organizational structure, fiscal responsibility, and a coherent long-range monetization approach.
American Market Expansion Accelerates
For decades, penetrating the U.S. market remained F1’s most elusive goal. Recent data suggests meaningful progress.
ESPN documented record-breaking viewership averaging 1.3 million for the 2025 campaign, with 18 out of 21 races posting increases compared to the previous year. Apple TV, now holding U.S. broadcast rights previously controlled by ESPN, indicates streaming figures are “way up” this season, though precise metrics remain undisclosed.
The addition of races in Miami, Austin, and Las Vegas has successfully attracted American audiences. According to UBS analyst Ryan Gravett, ticket purchases for this year’s Las Vegas Grand Prix are running two months ahead of last year’s timeline, while sponsorship agreements are significantly outpacing 2025 commitments.
The introduction of Team Cadillac, America’s first homegrown F1 team, provides another compelling storyline for domestic fans seeking representation.
On a worldwide basis, approximately 70 million viewers watch each race weekend. Competition among host cities remains intense, with both China and Saudi Arabia pursuing additional race slots on the calendar.
Wall Street’s Perspective
Sean Diffley at Morgan Stanley designates FWONK as his preferred selection throughout the entire media and entertainment landscape. His $120 price objective represents roughly 15% appreciation from current levels. He expresses surprise at the stock’s relatively low institutional ownership.
Guggenheim adopted an even more aggressive stance, boosting its target from $116 to $124 while reaffirming its Buy recommendation. The firm highlighted sponsorship acceleration, Las Vegas profitability, the forthcoming Madrid race, and international broadcast rights renewals as catalysts.
Among the 17 analysts monitored by FactSet, 15 maintain Buy ratings or their equivalents. Consensus projections anticipate EPS growth of nearly 22% in 2027, reaching $2.25.
The shares currently trade at 46 times forward earnings. While that multiple appears elevated, proponents note that sports properties commonly command valuations of seven to ten times revenue. F1 additionally produces free cash flow and has committed to deploying those resources for share repurchases over time.
Potential Headwinds to Consider
Despite growth, F1’s American audience remains considerably smaller than established U.S. sports leagues like the NFL, NBA, or MLB. A broader economic contraction could negatively impact race attendance. Financial performance can exhibit volatility.
The company’s most recent quarterly results showed revenue and OIBDA falling short of expectations, prompting Guggenheim to reduce its 2026 OIBDA projection despite simultaneously raising its price target.
Year-to-date, FWONK stock across its A, B, and C series has underperformed broader market indices, trading within a 52-week range between $80.15 and $109.36.
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