Deutsche Bank analyst Bryan Kraft believes Liberty Formula One’s acquisition of MotoGP is a “sound strategic move” that will leverage Formula One’s core capabilities and resources to continue MotoGP’s historically strong EBITDA and cash flow growth rate into the future. MotoGP should have a longer runway for growth than F1 currently has, if management’s thesis turns out to be correct, justifying a higher relative multiple, the analyst tells investors in a research note. The firm has a Hold rating on Liberty Formula One shares with a $73 price target.
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