Lance Vitanza, an analyst from TD Cowen, maintained the Buy rating on TKO Group Holdings (TKO – Research Report). The associated price target is $200.00.
Lance Vitanza has given his Buy rating due to a combination of factors including strong underlying trends across TKO Group Holdings’ properties and the ongoing renewal of UFC media rights. Despite a weaker-than-expected fiscal year 2025 guidance, largely due to an unexpected timing shift in overseas PLEs, the company’s performance in the fourth quarter of 2024 was favorable, with notable improvements in attendance and revenue trends per event.
Moreover, the recent acquisition of IMG, On Location, and PBR is expected to contribute positively to the company’s future growth. The transition of WWE Raw to a new distribution deal with Netflix, despite causing a temporary revenue dip, has started strongly, consistently ranking in Netflix’s weekly top 10 programs. These factors, combined with a projected price target of $200 based on a 20x multiple of the new, higher fiscal year 2026 estimates, support the Buy rating.
Based on the recent corporate insider activity of 58 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.