TKO Group Holdings (TKO – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst David Karnovsky from J.P. Morgan reiterated a Buy rating on the stock and has a $158.00 price target.
David Karnovsky’s rating is based on a combination of factors that highlight TKO Group Holdings’ strong financial performance and strategic positioning. The company’s recent earnings report showed revenue and adjusted EBITDA figures that exceeded market expectations, driven by robust performance in live events and sponsorships. Looking forward, TKO’s guidance for 2025, while slightly below previous forecasts, still suggests significant growth potential, particularly with expected increases in sponsorship revenue and cost savings from operational efficiencies.
Moreover, TKO’s strategic initiatives, such as negotiating new rights deals and exploring new ventures like a boxing league in Saudi Arabia, are expected to further enhance its revenue streams. The company’s strong free cash flow conversion and plans for shareholder returns through dividends and share repurchases also contribute to the positive outlook. Overall, Karnovsky’s Buy rating reflects confidence in TKO’s ability to capitalize on its market position and deliver attractive returns to investors.
In another report released yesterday, Pivotal Research also reiterated a Buy rating on the stock with a $195.00 price target.
TKO’s price has also changed moderately for the past six months – from $117.240 to $159.550, which is a 36.09% increase.