sports
Formula One is lagging other sport stocks. Why analysts think it's poised to race ahead
As the sports sector remains resilient among consumers, analysts are predicting big gains for this racing league.
TL;DR
- Formula One stock is expected to outperform despite lagging behind other sports entertainment companies.
- Analysts cite positive management commentary on sponsorship and licensing opportunities as a driver for sentiment.
- The sport has significant growth potential in under-penetrated markets like the US and Asia.
- Licensing and Consumer Products are seen as a major growth vector, potentially doubling or quadrupling revenue.
- The league's popularity has increased significantly since 2017, aided by the Netflix series 'Drive to Survive' and upcoming media projects.
- Sponsorship revenue is projected to reach approximately $1.1 billion by FY2027 and $1.2 billion by FY2028.
- Royalty base from licensing is expected to grow from $80-150 million to $175-310 million by 2028.