Liberty Formula One (FWONK) is entering the 2026 season with "freshness and vibrancy," highlighting strong early fan engagement, sponsorship traction, and improving media performance as key drivers supporting the sport's outlook, Morgan Stanley said in a Friday note.

The researchers pointed to a strong start under new regulations, with the first four races selling out and drawing over 1.3 million attendees, alongside rising global engagement, including more than 600 million YouTube views, over 120 million social media followers, and improving TV audiences worldwide.

Morgan Stanley said sponsorship momentum remains a key growth driver, supported by new and expanded brand partnerships, and highlighted continued strength in premium hospitality demand, with Paddock Club inventory largely sold out for the remaining races.

On media rights, the bank noted stronger early trends from a US streaming deal, including higher viewership, improved engagement, and a younger audience profile, along with European renewals that enhance visibility and reflect meaningfully higher deal economics, according to the report.

F1 is operating on a 22-race calendar after the Bahrain and Saudi Arabian Grands Prix were not held in April, with the potential for one to return later in the season as upside. The report also noted stronger-than-expected Q1 primary revenues, while team payments were broadly in line with expectations.

Morgan Stanley maintained its overweight rating on the stock and raised its price target to $120 from $117.

Shares of Formula One were up 1.4% in Friday trading.

Price: 94.83, Change: +1.35, Percent Change: +1.44