{"id":293214,"date":"2023-10-09T14:32:42","date_gmt":"2023-10-09T19:32:42","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=293214"},"modified":"2023-10-09T14:32:42","modified_gmt":"2023-10-09T19:32:42","slug":"formula-one-las-vegas-concerns-overdone-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/","title":{"rendered":"F1 Las Vegas Race Worries \u2018Overblown,\u2019 Says Analyst"},"content":{"rendered":"

Formula One Group (NASDAQ: FWONA) stock could be a name to buy as concerns surrounding the series\u2019 upcoming race in Las Vegas are overdone.<\/p>\n

\"MGM
A rendering of the Las Vegas Grand Prix F1 circuit. An analyst said concerns about the race are overblown. (Image: F1)<\/figcaption><\/figure>\n

That\u2019s the take of Citigroup analyst Jason Bazinet. In a new report to clients, he upgraded the stock to \u201cbuy\u201d from \u201cneutral\u201d while keeping a $71 price target on the shares. That implies upside of about 17% from the Oct. 6 close. While shares of Formula One are higher on a year-to-date basis, the stock is off almost 7% over the past three months.<\/p>\n

During that span, the shares have been volatile amid concerns regarding cost overruns<\/a> tied to the Las Vegas Grand Prix.<\/p>\n

Based on our estimate of Vegas\u2019s race economics, we believe F1\u2032s new capital expenditures (capex) guide extended the payback period by ~3 years,\u201d observed Bazinet. \u201cUltimately, we are not overly concerned by the extra capex, as the Vegas event could help drive U.S. engagement by bolstering media rights revenue.\u201d<\/p><\/blockquote>\n

The Las Vegas Grand Prix — the first F1 race in Sin City in four decades — is scheduled for Nov. 18.<\/p>\n

Las Vegas Grand Prix Expensive for Fans and F1<\/h2>\n

When Formula One unveiled plans for the Las Vegas race, it planned $210 in spending to make the event happen. However, rising inflation has sent those costs to nearly double initial projections.<\/p>\n

\n

Still, the company is banking on Las Vegas — the third city on the series\u2019 US slate — being a major growth driver both for it and the local economy. Earlier this year, <\/em>Formula One Group forecast that the Las Vegas Grand Prix could generate revenue of $500 million<\/a>, making it one of the most lucrative events on the circuit\u2019s calendar. There\u2019s also speculation that the race will generate local economic impact on par with or above that of the Super Bowl, which Sin City will host in February 2024.<\/p>\n<\/div>\n

As for the cost overruns, Citi\u2019s Bazinet said those fears are \u201coverblown,\u201d adding that the Las Vegas Grand Prix represents a chance for the series to bolster its footprint in the US.<\/strong><\/p>\n

Formula One\u2019s revenue streams are primarily corporate sponsorships, fees from brokers selling race tickets, media rights, and the company\u2019s Paddock Club hospitality unit.<\/p>\n

Speaking of Formula One Media Rights…<\/h2>\n

Bazinet added that one of the reasons Formula One stocks has recently been turbulent is speculation regarding the series\u2019 upcoming media rights negotiations.<\/p>\n

While F1 is the motorsport of choice for many fans outside the US<\/a> and it is increasingly popular in this country, there are concerns the operator may disappoint investors with its next rights package. Conversely, there\u2019s chatter Apple (NASDAQ: AAPL) could get involved and pay up to $2 billion to broadcast F1 races.<\/p>\n

\u201cAs such, if these reports prove true, we see incremental upside ~10% from prevailing levels,\u201d concluded the Citi analyst. \u201cWe view the relative risk-reward associated Apple\u2019s prospective interest in F1\u2032s global media rights as attractive at prevailing levels.\u201d<\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Formula One Group (NASDAQ: FWONA) stock could be a name to buy as concerns surrounding the series\u2019 upcoming race in Las Vegas are overdone. That\u2019s the take of Citigroup analyst Jason Bazinet. In a new report to clients, he upgraded the stock to \u201cbuy\u201d from \u201cneutral\u201d while keeping a $71 price target on the shares. […]<\/p>\n","protected":false},"author":46,"featured_media":227077,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,83505,81886],"tags":[81903,82381,23],"acf":[],"yoast_head":"\nFormula One Las Vegas Concerns Overdone, Says Analyst<\/title>\n<meta name=\"description\" content=\"Formula One Las Vegas worries overblown, says Citi analyst.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Formula One Las Vegas Concerns Overdone, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Formula One Las Vegas worries overblown, says Citi analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-09T19:32:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/\",\"name\":\"Formula One Las Vegas Concerns Overdone, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg\",\"datePublished\":\"2023-10-09T19:32:42+00:00\",\"dateModified\":\"2023-10-09T19:32:42+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Formula One Las Vegas worries overblown, says Citi analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg\",\"width\":1920,\"height\":1080,\"caption\":\"A rendering of the Las Vegas Grand Prix F1 circuit. An analyst said concerns about the race are overblown. (Image: F1)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"F1 Las Vegas Race Worries \u2018Overblown,\u2019 Says Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Formula One Las Vegas Concerns Overdone, Says Analyst","description":"Formula One Las Vegas worries overblown, says Citi analyst.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/","og_locale":"en_US","og_type":"article","og_title":"Formula One Las Vegas Concerns Overdone, Says Analyst","og_description":"Formula One Las Vegas worries overblown, says Citi analyst.","og_url":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-10-09T19:32:42+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/","url":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/","name":"Formula One Las Vegas Concerns Overdone, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg","datePublished":"2023-10-09T19:32:42+00:00","dateModified":"2023-10-09T19:32:42+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Formula One Las Vegas worries overblown, says Citi analyst.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/F1.jpg","width":1920,"height":1080,"caption":"A rendering of the Las Vegas Grand Prix F1 circuit. An analyst said concerns about the race are overblown. (Image: F1)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/formula-one-las-vegas-concerns-overdone-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"F1 Las Vegas Race Worries \u2018Overblown,\u2019 Says Analyst"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/293214"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=293214"}],"version-history":[{"count":3,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/293214\/revisions"}],"predecessor-version":[{"id":293219,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/293214\/revisions\/293219"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/227077"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=293214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=293214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=293214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}