Morgan Stanley Expects Formula 1 Stock Growth

Morgan Stanley has named Liberty Formula One one of the most interesting investment choices in the media and entertainment industry. According to the bank's assessment, Formula 1 has significant growth potential in the United States and China, where the sport is not yet fully established.

Analysts believe that Liberty Formula One's share price lags behind the company's actual value. Morgan Stanley has set a target price of $120 per share, and does not rule out growth to $135 in an optimistic scenario. Bank representatives met with the company's management in Britain during the Silverstone Grand Prix. More than 570,000 fans attended the race over three days.

According to Morgan Stanley's assessment, Formula 1's audience grows by approximately 10% annually. More than 40% of fans are under 35 years old. Despite the sport having more than 800 million followers worldwide, its recognition in the United States and China remains relatively low. For this reason, the bank considers these two markets to be one of the main sources of Formula 1's revenue growth.

Liberty Formula One is also being monitored by other financial institutions. Bernstein SocGen has raised its target price to $115 per share, while UBS has lowered its forecast to $104. The race calendar is also in focus. It is expected that of the two Grand Prix races cancelled in the Middle East, only one will be held in the upcoming season.

Source: Investing.com