Shares of Liberty Media Formula One might exceed moving forward as the sport’s appeal in the U.S. grows, according to MorganStanley Analyst Benjamin Swinburne updated shares to obese from equal-weight, stating in a Wednesday note that the stock can rally from here thanks to growing interest in Formula One racing occasions. “F1’s rising popularity is translating into faster revenue growth, and the contractual nature of that growth leads to attractive compounding growth for its investors,” the note read. Morgan Stanley raised the cost target to $72 from $65 The brand-new cost target indicates almost 24% upside from Tuesday’s closing cost. Analysts think the stock might get an increase this year from a renewal of U.S. media rights, along with from the Las Vegas Grand Prix next year. They likewise stated Liberty Media Formula One’s contractually driven service design will create a premium for the business. “In a media landscape facing rising headwinds, sports rights represent a rare opportunity,” Swinburne composed. “Global tech platforms are increasingly competing with incumbent broadcasters for exclusive rights, suggesting the value of sports may be inflecting higher.” Formula One’s appeal in the U.S. has actually taken off over the last few years, thanks in big part to Netflix’s “Formula 1: Drive to Survive” docuseries. The reveal follows all 10 groups in the sport and functions interviews with chauffeurs and crucial figures in FormulaOne Swinburne likewise kept in mind that the sport emerged with a bigger and “more lucrative” race calendar from the Covid-19 pandemic, with an overall of 23 races each year beginning next year. Shares of Liberty Media Formula One acquired more than 1% in Wednesday premarket trading.– CNBC’s Michael Bloom added to this report.