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Red Bull team boss Christian Horner expects Mercedes to be major challengers when the new Formula 1 season gets underway in Australia later this month.
Mercedes showed up well during final pre-season testing at Barcelona and Horner expects the signing of Lewis Hamilton to have a big influence in the Silver Arrow's performance.
Horner told PA Sport: "Their car looks quick and with Lewis joining the team they will naturally take a step forward.
"Their challenge will be sustaining it over a whole season, as they have been quick the last couple of years at the beginning - winning the third race last year in China.
"Lewis, as we all know, is a world-class driver and he is going to raise their level.
"He is worth lap-time, which is why they signed him and I'm sure they're going to be a factor this season."
Mercedes are13.00to win the constructors' title this season, with Red Bull 1.90, while Hamilton is11.00to win the opening race of the campaign in Melbourne on Sunday 17th March.
Hamilton had earlier been a little more reserved in his assessment of his chances, saying: "I just hope we can be competitive.
"If we arrive at the first race and we are in front, then it's going to be spectacular. If not, we will just have to keep working at it and I have the patience to do that."
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