Benchmark analysts reiterated a Buy rating and $77 per share price target for Formula One Group (FWONA) in a note on Wednesday ahead of this weekend’s landmark Monaco Grand Prix and the closure of negotiations over both the new 2026 technical rules and new F1 Concorde Agreement.
Benchmark’s optimism is bolstered by the expectation of significant regulatory changes and changing competitive dynamics.
Analysts say the dominance of Red Bull and Max Verstappen is beginning to wane, as evidenced by Lando Norris’ surprise Grand Prix victory and notable improvements over Ferrari, McLaren and Aston Martin. These developments suggest a more competitive environment is emerging, forcing Red Bull to speed up its own updates.
Additionally, the investment firm says Formula One continues to strike a delicate balance between maintaining its legendary European races such as Imola and Monaco while expanding into fast-growing markets such as Thailand.
Analysts say the expansion is significant given growing interest from consumers around the world, especially younger audiences who value experience-based spending. The sport’s ability to attract large and predictable audiences continues to drive strong demand for sponsorship from leading brands.
Negotiations on a new Compact Agreement, due to begin in 2026, are advancing against the backdrop of rising Formula One revenues and higher team valuations. In addition, potential regulatory changes, including a switch to fully clean fuels and a possible return to V8 engines, are seen as a reflection of the sport’s commitment to innovation and sustainability.
As the Monaco Grand Prix approaches, Benchmark remains confident in FWONA’s growth prospects, underpinned by these strategic developments and the sport’s enduring global appeal.