Citi analyst Jason Bazinet maintained a Buy rating on TKO Group Holdings yesterday and set a price target of $200.00.
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Jason Bazinet has given his Buy rating due to a combination of factors surrounding the recent agreement between TKO Group Holdings and Skydance. The seven-year deal, valued at approximately $1.1 billion annually, represents a significant increase from TKO’s previous agreement, which was with Disney. This new deal not only exceeded investor expectations but also positions Paramount as the exclusive broadcaster for UFC events in the US, enhancing the company’s market presence.
Moreover, the agreement includes strategic benefits such as moving away from the pay-per-view model, making premium UFC events available on Paramount+ at no extra cost, and allowing TKO to retain additional advertising inventory. These elements are expected to drive a substantial increase in TKO’s equity value, with Bazinet anticipating a 5-6% rise in share price. The overall expected share price return of 22.5% further supports the Buy rating, indicating strong potential for growth and profitability.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $184.00 price target.
Based on the recent corporate insider activity of 66 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.