Wells Fargo has upgraded Liberty Formula One to Equal Weight from Underweight and nudged its price target up to $95 from $93, saying that earlier concerns have largely been priced into the shares and that risks and potential upside now appear more evenly matched.
In explaining the change, the bank noted that its initial caution focused on two primary issues: the reduced leverage implied by the new Concorde agreement and the possibility that U.S. media rights income might fall short of expectations. Since that assessment, the company has provided additional information about the economics of the Concorde agreement, and U.S. media rights have shifted from ESPN to Apple. Wells Fargo remains more conservative than the consensus on media revenue because of a cautious view on F1 television, but it said that the gap between its stance and the street does not materially change its overall estimates.
Costs and reinvestment
The bank reiterated that the business is still cost-intensive. Wells Fargo expects Liberty to invest in MotoGP marketing and technology in both 2026 and 2027, and it assumes that some of the incremental economics generated by Concorde will be reinvested back into the business. The firm also flagged that forthcoming changes to Formula 1 power unit and aerodynamic regulations could introduce variability in team performance and fan engagement, which may affect results.
Areas of strength
Wells Fargo highlighted several positive developments. Sponsorship revenue increased 31% in 2025, supported by partnerships including LVMH, and the bank sees room for further growth from new sponsors and paddock-related sales. It also pointed to the fact that roughly 70% of revenue is contractual and visible, which the bank views as a stabilizing factor for future performance. A cleaner stock structure was noted as well, which the bank believes could improve the company’s prospects for mergers and acquisitions.
Updated financials and valuation
Wells Fargo trimmed its revenue forecasts modestly for 2026 and 2027 to $4.74 billion and $5.04 billion, respectively, mainly reflecting lower MotoGP actuals. At the same time, the bank raised its adjusted OIBDA estimates to $1.25 billion for 2026 and $1.33 billion for 2027, and lifted free cash flow projections to $881 million and $969 million for those years. In its valuation work, Wells Fargo places the shares at roughly 20 times EV to EBITDA and adds $9 per share to reflect potential M&A upside.
Quant tools and stock screening
The article also referenced an AI-driven screening tool that evaluates FWONA alongside thousands of other companies across more than 100 financial metrics to surface stock ideas based on fundamentals, momentum, and valuation. The tool is described as unbiased and focused on identifying risk-reward opportunities, and the write-up noted examples of notable past winners identified by the system.
Overall, Wells Fargo’s upgrade reflects a pivot from earlier caution toward a view that sees a more balanced set of risks and opportunities for Liberty Formula One, driven by clearer Concorde economics, a shift in U.S. media rights, growing sponsorship, and a largely contractual revenue base.