Hold Rating for TKO Group Holdings Amid Strategic and Governance Concerns

Benchmark Co. analyst Mike Hickey has maintained their neutral stance on TKO stock, giving a Hold rating on May 9.

Mike Hickey has given his Hold rating due to a combination of factors impacting TKO Group Holdings. Despite reporting higher-than-expected Q1 2025 results, the company’s performance was largely boosted by acquisitions rather than organic growth. The core segments showed mixed results, with IMG experiencing a significant revenue decline, which highlights underlying weaknesses. Additionally, while the management has raised its guidance for FY25, much of the positive outlook was already accounted for in the first quarter’s results.
Concerns also arise from the UFC’s media rights situation, as the current agreement with ESPN is nearing expiration and the relationship between the two has reportedly deteriorated. This, coupled with the launch of a new boxing venture by UFC’s President, suggests potential strategic distractions. Furthermore, the acquisition of IMG and On Location has raised governance issues, with legal investigations underway and questions about the strategic fit of these assets. These factors contribute to the Hold rating, reflecting uncertainty and potential risks in TKO’s future performance.

In another report released on May 9, Morgan Stanley also maintained a Hold rating on the stock with a $160.00 price target.

Based on the recent corporate insider activity of 57 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.