Bank of America announced an upgrade of Liberty Media Formula One (FWONK) shares on Wednesday, moving its rating from Neutral to Buy while keeping a $105 price target. The firm's analyst, Brent Navon, pointed to the company s a resilient media and entertainment asset with highly visible revenue streams and attractive long-term monetization potential.
Visible revenue and risk-reward profile
Navon argued that in an environment marked by macroeconomic and geopolitical volatility, investors place a premium on businesses with predictable and durable cash flows. He described Formula One as a standout in the sector due to its high revenue visibility and a favorable risk-reward profile at current valuations.
Insulation from disruption
BofA also highlighted Formula One s relatively insulated from disruption tied to artificial intelligence. The analyst noted that live sports businesses are less exposed to AI-driven disintermediation compared with other segments of the media ecosystem.
Near-term impact from cancellations, longer-term outlook unchanged
The cancellation of the Saudi Arabian and Bahrain races amid Middle East hostilities prompted Bank of America to reduce its 2026 revenue estimate by $191 million and to cut adjusted OIBDA by $80 million. Despite those downward revisions, the firm left its 2027 forecast unchanged and characterized the race cancellations as one-time disruptions.
Monetization opportunities and acquisitions
Navon pointed to the recently completed MotoGP acquisition as a source of longer-term upside. He noted that Formula One currently monetizes media rights at nearly five times the level realized by MotoGP, race promotion at six times, and sponsorship at roughly 10 times, indicating substantial room for revenue uplift if MotoGP is brought closer to F1 enchmarks over time.
Capital returns potential
Bank of America also flagged the potential for meaningful capital returns by 2027. The firm estimated that Liberty Media Formula One could repurchase approximately $2 billion of stock using excess free cash flow by that year.
Conclusion
In sum, BofAlevated its stance on FWONK based on revenue visibility, resilience to certain technological risks, and clear avenues for monetization expansion. The firm absorbed short-term hits to 2026 estimates from race cancellations while retaining a steady longer-term outlook and identifying a path to shareholder returns via buybacks.