Pivotal Research analyst Jeffrey Wlodarczak has reiterated their bullish stance on TKO stock, giving a Buy rating on October 31.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors including TKO Group Holdings’ strong third-quarter performance and the upward revision of its full-year revenue and EBITDA guidance. The company has demonstrated robust growth potential, particularly with its unique sports and entertainment assets like UFC and WWE, which have a substantial global fan base.
The business model of TKO is characterized by high EBITDA margins and impressive free cash flow conversion rates, suggesting that there is still significant room for monetization in various areas. Additionally, the competitive landscape in media distribution, especially with the involvement of internet streaming players, presents a promising opportunity for TKO to capitalize on increased sports rights fees. Furthermore, the company’s strategy to expand live events and explore higher monetization avenues, along with potential growth in consumer licensing and streaming, supports the optimistic outlook. Despite some risks, such as M&A and dependency on star power, the overall prospects and strategic positioning of TKO underpin the Buy recommendation.
In another report released on October 31, Roth MKM also maintained a Buy rating on the stock with a $210.00 price target.