Goldman Sachs Group, Inc. is bullish on Liberty Formula One (FWONA.US): growth + debt reduction with a potential return for shareholders of $6 billion in the making.

Goldman Sachs Group, Inc. recently resumed coverage of Liberty Formula One (FWONA.US), giving it a "buy" rating and setting a target price of $120. The investment bank believes that the company has significant advantages in terms of profitability and shareholder returns in the coming years. The report points out that with the continued growth in global sports event viewership and optimization of sponsorship agreement terms, both the F1 and MotoGP businesses under Liberty Formula One are expected to benefit simultaneously. In particular, after the new commercial agreement with participating teams takes effect in 2026, the company's profit margins are expected to further improve. Goldman Sachs Group, Inc. emphasizes that due to better-than-expected sponsorship revenue growth and effective cost control, its revenue and profit forecasts for the F1 business are higher than the market's general expectations. While the newly acquired MotoGP event may experience a temporary slowdown in growth due to business integration, it is expected to replicate the successful development path of F1 in the long term. In terms of finances, Goldman Sachs Group, Inc. specifically points out that the company's balance sheet continues to improve, with debt levels expected to significantly decrease by 2028, thereby creating over $6 billion in return space for shareholdersequivalent to a quarter of the current market value. Although the stock is currently trading at a higher valuation than its peers, Goldman Sachs Group, Inc. believes that the current premium is justified considering the company's long-term positioning in the sports media sector and strong cash flow potential. If Liberty Formula One can achieve its growth targets as planned, clarify its MotoGP development strategy, and initiate a shareholder return plan, the stock price is expected to undergo a reevaluation of its value.