Formula One upgraded to buy at Citi, says sports rights concerns are 'overblown'
Sjoerd van der Wal/iStock Unreleased via Getty Images
Formula One Group (NASDAQ:FWONA) shares were upgraded to buy at Citi, as the investment firm said any concerns about sports rights renewals are "overblown."
Analyst Jason Bazinet raised his rating on Formula One Group (FWONA) shares to buy from neutral and said that concerns over Vegas Grand Prix media rights and the recent renewal for WWE rights with NBCUniversal have raised investor concern about U.S. sports rights, but those appear to be unfounded.
WWE, which is owned by TKO Group Holdings (TKO), signed a five-year domestic rights deal with NBCUniversal to bring Friday Night SmackDown back to the USA Network, starting in October 2024.
It was reported that the agreement has similar rates as the old deal, at roughly $1.5B.
In addition, starting in the 2024/25 season, WWE will produce four primetime specials per year which will air on NBC, marking the first time WWE will air on the network in primetime.
Bazinet also said there is "upside" in Formula One Group (FWONA) shares if Apple (AAPL) were to secure global media rights. Earlier this week, it was reported that Apple was considering a multi-billion dollar offer for Formula One's global rights, perhaps to the tune of $2B a year.
Formula One Group (FWONA) shares were little changed in pre-market trading on Friday.
Analysts are largely cautious on Formula One Group (FWONA). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates FWONA a HOLD.

More on Formula One Group

Formula One Group: Building The Brand, But A Separate Listing Could Help
Formula One Group Q2 2023 Earnings Call Transcript
Formula One gains amid report Apple TV may make multibillion offer for global rights
Liberty Media wraps split-off of Atlanta Braves
Seeking Alphaâs Quant Rating on Formula One Group