Pivotal Research analyst Jeffrey Wlodarczak has reiterated their bullish stance on TKO stock, giving a Buy rating today.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors that highlight TKO Group Holdings’ strong position in the sports and entertainment industry. The company reported robust second-quarter results and increased its full-year revenue and EBITDA guidance, aligning with Wlodarczak’s forecasts. A significant factor contributing to the positive outlook is the new media rights deal with ESPN, which will become the exclusive U.S. home for WWE Premium Live Events starting in 2026. This deal not only surpasses previous agreements but also retains some monetizable rights, indicating potential for future revenue growth.
Wlodarczak also emphasizes TKO’s control over rare sports assets with a global fan base, which presents high barriers to entry and substantial organic growth opportunities. The business model is characterized by high EBITDA margins and strong free cash flow conversion rates, suggesting that the assets are still under-monetized. Additionally, the competitive landscape in media distribution, with increased interest from internet streaming players, is seen as a favorable trend for TKO. Despite potential risks such as M&A activity and dependency on star talent, the overall investment thesis supports a Buy rating, with a target price increase to $225, reflecting confidence in TKO’s future performance.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $220.00 price target.