Auto racing league Formula One (NASDAQ:FWONA)(NASDAQ:FWONK) has grown its global following through new races, TV rights deals and sponsorships. An analyst sees more sponsorship opportunities ahead and more upside for the stock.
The Formula One Analyst
Bank of America Securities analyst Brent Navon reiterates a Buy rating on Formula One and raises the price target from $105 to $115.
The Analyst Takeaways
Navon says Formula One’s sponsorships are "firing on all cylinders" in a new investor note.
"We continue to see significant runway for growth in Formula One’s sponsorship business," Navon said.
The analyst said helping more sponsorships is the addition of new brands and categories, renewals of existing partnerships and growth of F1’s licensing business.
"FWONK remains disciplined in limiting the number of global partners, which should support favorable pricing dynamics and enhance the long-term value of sponsorship inventory."
For licensing, Navon highlights deals with KitKat and Barilla that extend F1’s reach to a new, younger audience and also create new revenue streams for the motorsports league.
"While still early, we believe the licensing business could become several times larger than it is today."
The analysts sees options to change the racing schedule going forward, adding some new international markets and rotating some races to maintain fan bases and expand new opportunities.
"We believe there is a premium on highly durable and visible business models."
The analyst also highlights live sports being insulated from some AI risks.
Formula One Stock Price Action
Formula One stock is up 1.6% to $92.37 on Monday versus a 52-week trading range of $73.70 to $99.49. Formula One shares are up 3.7% year-to-date in 2026.
Image via Shutterstock/ Michael Cola
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