Formula 1 Stock Predictions | Is Formula 1 a good stock to buy?

Will the continued expansion of Formula 1 help increase the stock? – Photo: Shutterstock; Michael Cola

Investors in Formula 1 Group (FWONK) hope the excitement surrounding next year’s record-breaking 24-race schedule will boost the action.

The FIA ​​Formula 1 World Championship, considered the pinnacle of international motorsport, has more than half a billion passionate fans around the world. And it is hoped that the continued expansion of the sport will lead to increased revenue for the company and benefit the FWONK stock price.

In our Formula One Group Stock Forecastwe take a look at its recent results, analyze stock performance and reveal what analysts expect to happen.

What is the Formula 1 Group?

Formula One Group controls the exclusive commercial and promotional rights to the FIA ​​Formula One World Championship Series and the monetization of those rights. The company is responsible for the development and promotion of the series, together with the FIA ​​(the regulatory body), participating teams and commercial partners.

It is a subsidiary of Liberty Media, which bought F1 for $8 billion in January 2017, and trades on the Nasdaq stock exchange under the symbol: FWONK. This stock tracks and reflects the economic performance of the activities, assets and liabilities attributed to the Formula Group.

F1 racing has been part of the motorsport calendar for over 70 years. It has long attracted the cream of engineers and pilots. Each race on its international calendar sees thousands of spectators throng the venues, as well as millions of passionate fans watching the action on television.

The sport’s drivers have also become household names over the years, with Michael Schumacher and the late Ayrton Senna among those to win the annual world championship series.

In 2021, the title was decided in the final laps of the final race where, in controversial circumstances, Max Verstappen overtook Sir Lewis Hamilton to clinch the crown.

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How has the FWONK stock price changed?

Any Formula One Group stock forecast should consider how the stock has performed over the past few years and whether it has been a good investment. FWONK’s stock price fell from $31.65 in January 2017 to $57.05 at the close of trading on November 16.

Live FWONK share price

The all-time high closing stock price was $70.08 recorded on April 1, 2022, while the average price for the past 52 weeks was $62.16.

According the morning star November 17 data.

FWONK stock price

Revenue up but profit down in Q3

Results for the third quarter of 2022 showed the Formula 1 group’s revenue was $715 million, $47 million higher than the figure of $668 for the corresponding quarter in 2021. Group total, meanwhile, was $64 million, down $4 million. since the third quarter of last year.

F1 primary revenue increased in the third quarter with growth in media rights and sponsorship, partially offset by lower race promotion revenue. The report said:

“Race promotion revenue decreased due to lower fees generated from the different combinations of events held, with an additional race held outside of Europe in the prior year period.”

Media rights increased due to growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements. Sponsorship revenue also increased due to the recognition of revenue from new sponsors.

According to Stefano Domenicali, Chairman and Managing Director of Formula 1, the sport is performing well across the board, including financial results, engagement with fans and action on the track. He said:

“We look forward to a strong end to the season with drivers and teams battling it out on the track.”

In a letter to shareholders in April 2022, the company highlighted the success of Drive to Survive, Netflix’s behind-the-scenes show, in bringing new fans to the sport, noting:

“According to market research, 73% of US viewers are more interested in F1 after watching the show… The fourth season reached #1 on Netflix in 33 countries in its first weekend.”

More meetings next year

At the end of September 2022, a 24-race schedule was announced for 2023, with China and Qatar returning and Las Vegas arriving to host the penultimate round on a Saturday evening.

The season starts in Bahrain on March 5 and ends in Abu Dhabi on November 26. As usual, there will be a summer break in August.

In a statement, FIA President Mohammed Ben Sulayem said the addition of new venues helped underline the FIA’s “good management” in the sport.

“I am delighted that we can bring the new era of exciting Formula 1 racing, created by the 2022 FIA Regulations, to a wider fanbase in 2023,” he added.

Formula One Group stock forecast: where will the price go next?

So what could happen to FWONK stocks? It was rated a “moderate buy,” based on four analysts’ FWONK stock forecasts compiled by market beat, from November 17. Three had ‘buy’ recommendations in place and one ‘sell’.

Their consensus was that FWONK stock price could reach $70.60 within the next 12 months. The highest forecast for the Formula 1 group’s shares for 2023 suggested it could reach $77, the lowest forecast predicted a slight decline to $56.

According TipRanks Data as of Nov. 17, three analysts offering 12-month price targets believed the stock to be a “solid buy,” with their consensus view being that the price could hit $70.33 in the coming year. The highest FWONK stock forecast was $73 and the lowest was $68.

Meanwhile, the Formula 1 group’s stock forecast for 2025 from portfolio investor, an algorithmic forecaster, had a price reaching $98.99 in November 2025.

Neil Macker, Senior Equity Analyst at the morning starhad a fair value estimate of $49 on the stock, according to its Formula One Group stock price forecast.

He pointed out that the return of crowds boosted advertising and hospitality revenue in the third quarter, but fewer air races — trips that require air travel — hurt racing promotion revenue. He said:

“Higher promotion costs are one of the main reasons not only for the 24-race calendar, but also for the increase in the number of GPs outside of Europe,” he said, adding:

“The 2023 season will feature four races in the Middle East, five in North America with three in the United States, four in Asia-Pacific, two in Eastern Europe and one in South America with the remaining eight in Western Europe. the West.”

However, Macker raised some concerns about the expanded list of devices.

“The 24 GP calendar and expansion outside of Europe will lead to some very strange trips which could lead to public reactions from teams. An example is April and May where races will move from Melbourne to Shanghai to Baku in Miami in Imola, Italy.

He also suggested that the “increasingly extended schedule” increases the risks of climate change activism and protests against F1 and its teams, noting:

“While the actual races generate relatively little pollution, the need to ship approximately 30 metric tons of race cars, tools, parts, computers and other support equipment for each of the 10 teams per race consumes quite a bit of fuel, especially with races. outside Europe depending on air and sea freight.

While Macker doesn’t see this as a major risk to the business model, he pointed out that it could cause problems for ESG investors.

“Even the potential move to a 100% sustainably powered hybrid engine in 2025 would not alleviate freight-related environmental concerns,” he added.

Final Thoughts

Remember that analysts’ forecasts of Formula One Group shares may be wrong. They should not be used as a substitute for your own research. Always do your own due diligence, studying the latest news, a wide range of commentary, technical and fundamental analysis.

Remember that past performance is not a reliable indicator of future returns. And never trade money you can’t afford to lose.

FAQs

Is Formula One Group a good stock to buy?

Whether FWONK stock is a good buy will depend on your analysis of the company and its future prospects. It is important to draw your own conclusions and not rely solely on the views of stock analysts whose forecasts may not be correct.

Will Formula One Group shares go up or down?

No one is certain. The stock was rated a “moderate buy”, based on FWONK stock forecasts from four analysts, compiled by market beat from November 17. Three had ‘buy’ recommendations in place and one ‘sell’. Their consensus was that FWONK’s stock price could reach $70.60 within the next twelve months. While the highest forecast for the Formula 1 group’s shares for 2023 suggested it could reach $77, the lowest forecast predicted a slight decline to $56. Note that analysts’ opinions may be wrong.

Should I invest in shares of Formula One Group?

This will depend on your personal situation, your investment objectives and your opinion of the company’s prospects. Always do your own due diligence before investing.

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