TD Cowen sees Liberty Formula One Group Class A shares poised for substantial gains ahead. The firm started coverage on the racing series with an outperform rating and a $90 price target, implying an upside of nearly 40% from Friday’s close. Analyst Stephen Glagola said operating income before depreciation and amortization (OIBDA) could beat consensus estimates by 15% as the company is “in the early stages of ramping up commercial rights asset utilization.” . “FWON’s highly contracted revenue and variable cost structure provides low execution risk and resilience against consumer discretionary downturns,” Glagola said. He also noted that the company has locked in commercial rights to the World Championships, which could generate more revenue from fee revenue. “Formula 1 has a minimal working capital impact, low capital intensity and efficient tax structure in leveraging its acquired FIA World Championship commercial rights agreement, driving the ability to earn race promotion fees, media rights and sponsorship fees ( carry annual escalators, which can be repriced at the end of the ~3-7 year term),” Glagola said. “This results in a strong operating ROIC (return on invested capital) profile: we estimate an average annual growth rate of 30% in 2019-2022 and 41% in 2023-2027.” Formula 1 Class A shares to date up more than 20%. The sport’s popularity has skyrocketed in recent years, thanks in part to the Netflix documentary series “Formula 1: Survival.” FWONA YTD Mountain Formula 1 Class A shares are up an impressive 21% from the start of the year. — CNBC’s Michael Bloom contributed to this report.