Analyst Ryan Gravett of UBS maintained a Buy rating on TKO Group Holdings, boosting the price target to $235.00.
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Ryan Gravett has given his Buy rating due to a combination of factors that suggest strong growth potential for TKO Group Holdings. The renegotiated media rights and enhancements to the capital returns program are expected to drive further growth, with new opportunities for monetization likely to exceed current market expectations. The expanded reach from the new UFC deal is anticipated to boost audience numbers and accelerate revenue growth in Partnerships & Marketing, with projections indicating a significant increase by 2027.
Additionally, the removal of the pay-per-view paywall and the simulcast of events on CBS are set to attract more sponsors, enhancing the property’s appeal. The new commercial inventory in UFC and WWE deals is expected to contribute substantially to high-margin revenues. With these strategic moves, Gravett forecasts a notable increase in consolidated EBITDA and a strong cash generation, which will improve leverage and provide flexibility in TKO’s capital structure. These factors collectively underpin the optimistic Buy rating for TKO Group Holdings.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $250.00 price target.