Bernstein has upgraded Liberty Media Formula One Corp (NASDAQ:FWONA) to Outperform, marking a shift in sentiment after a stagnant 2025. The broker predicts 2026 as a pivotal year for Formula One with favorable deal-making opportunities that could elevate earnings estimates. Bernstein has increased its price target to $111, reflecting optimism about the race calendar potentially tilting towards higher-paying host cities, which would enhance revenue streams.

The broker anticipates stronger international media rights growth, with Apple identified as a potential competitive bidder in key markets like Spain, Italy, and Germany. Additionally, the recovery of profitability at the Las Vegas Grand Prix, a major revenue generator, could support broader group profitability. Beyond these near-term factors, Bernstein highlights additional upside risks, including greater-than-expected leverage on team payments under the new Concorde Agreement and improved execution on brand and sponsorship deals as media rights momentum builds.

The broker also suggests a modest chance that Liberty could seek bids for the Formula One business, citing its appeal as a potential acquisition target not reflected in current valuation. While Bernstein adjusted estimates to reflect a longer investment runway for MotoGP, which modestly lowers near-term earnings forecasts for 2025 and 2026, these effects are outweighed by structural tailwinds at Formula One, leading to a high single-digit increase in its 2027 EBITDA forecast.