Wolfe Research analysts raised Liberty Media Acquisition Corp. (NASDAQ:FWONK) to Outperform from Peer Perform with a price target of $84 per share in a note Tuesday.
They told investors that the firm sees years of improving global race productivity for the company.
"Amidst our thematic bullishness about Live Entertainment, Formula One stands out as a global luxury brand, and one whose revenue has yet to catch up with its rising franchise value," wrote the analysts.
They explained that while Formula 1's heritage started back in the 1950s, it "began a new life" when Liberty Media acquired it in 2017.
"Since then, attendance per Grand Prix has risen by almost +50%, EBITDA +70%, and team values multiplied," they stated. "And while our coverage launch emphasized F1's moderating growth outlook and high investor expectations for LVGP, we have gained conviction about the magnitude of F1's opportunities to upgrade race productivity, media rights, sponsorships, and the Concorde Agreement."