Analyst Note| Neil Macker, CFA |
Formula One reported another strong quarter, as second-quarter revenue and EBITDA beat versus FactSet consensus. F1 ran seven races during the quarter compared with none a year ago, as the front half of 2020 was wiped out because of the coronavirus pandemic. The ongoing lockdown restrictions have already forced one race to be moved from Montreal to Istanbul, and the Singapore Grand Prix was canceled. Given varying levels of vaccination rates and recent outbreaks of the delta variant, we think more races could be moved or canceled during the 2021 season. We are maintaining our narrow moat rating and $37 fair value estimate.