Benchmark Co. analyst Mike Hickey has maintained their neutral stance on TKO stock, giving a Hold rating on February 27.
Mike Hickey has given his Hold rating due to a combination of factors impacting TKO Group Holdings. The company’s 2025 guidance fell short of market expectations, primarily due to rising costs and uncertainties surrounding the UFC media rights renewal. While sponsorship and site fees offer some support, the transitional year for WWE and changes in revenue recognition add additional risks.
Furthermore, the recent acquisition appears to benefit management more than shareholders, introducing integration costs and strategic uncertainties. Although TKO’s quarterly performance showed revenue and AEBITDA exceeding consensus, the growth was modest, with limited operating leverage. The mixed performance, with WWE’s revenue decline offset by UFC’s growth, and the weaker-than-expected guidance, contribute to the Hold rating, reflecting a cautious outlook on the company’s ability to drive sustainable value.
In another report released on February 27, Morgan Stanley also maintained a Hold rating on the stock with a $160.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TKO in relation to earlier this year.