Formula One Group Series C Shares at $83 Valued at 42x Forward Earnings
Jim Cramer recommended buying Formula One Group’s Series C shares at around $83, citing their liquidity and standalone exposure to F1, MotoGP and minority ventures. The stock trades at about 42 times forward earnings with analyst targets ranging from $95 to over $100.
1. Cramer Bullish Recommendation
Jim Cramer highlighted Formula One Group’s Series C shares as a prime buying opportunity at approximately $83 per share. He emphasized their liquidity and pure-play exposure to the Formula 1 Auto Racing League, Grand Prix motorcycle racing and various minority investments.
2. Analyst Consensus and Targets
The stock holds 13 Buy ratings and four Holds, with price targets spanning from $95 by the most conservative firm up to over $100 from the majority of analysts. Wells Fargo, previously the biggest bear, raised its target to $95, marking a notable shift.
3. Valuation Perspective
Formula One Group trades near 42 times this year’s earnings estimate, representing its most attractive valuation on a price-to-earnings basis since listing. Cramer argued the company’s scarcity value and unique global sports assets justify a premium multiple.
4. New Season Driving Investor Interest
The launch of the upcoming Formula 1 racing season on a major streaming platform adds a catalyst for viewership growth and fan engagement. Cramer suggested this timing enhances the case for initiating or increasing positions ahead of potential revenue gains.