Bank of America upgraded its rating on Liberty Media Formula One from neutral to buy on Wednesday, citing the company's resilient business model, long-term monetization potential, and favorable risk-reward ratio at current valuations.
Analyst Brent Navon maintained his $105.00 price target on the stock.
He emphasized that in a volatile economic and geopolitical environment, Formula One's highly transparent revenue streams make it stand out in the media and entertainment sector.
"In a volatile economic and geopolitical environment, we believe there is a premium for such robust and transparent business models as Formula One," Navon wrote.
Bank of America also pointed to Formula One's relative insulation from AI disruptions as a positive, noting that live sports are less vulnerable to the risks of AI-mediated disruptions than other parts of the media ecosystem.
The cancellation of the Saudi Arabia and Bahrain Grands Prix due to hostilities in the Middle East prompted Bank of America to cut its 2026 revenue estimate by $191.00 million and its adjusted EBITDA by $80.00 million, although the firm left its 2027 outlook unchanged, describing the disruptions as one-off events.#AsiaStocksPlunge
