Analyst Brent Navon CFA of Bank of America Securities reiterated a Buy rating on TKO Group Holdings, boosting the price target to $200.00.
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Brent Navon CFA has given his Buy rating due to a combination of factors that highlight TKO Group Holdings’ strong market position and growth potential. The company’s shares have shown impressive performance, rising over 20% year-to-date, which is a significant achievement compared to the broader market. This success is attributed to TKO’s perceived resilience to macroeconomic challenges, effective execution in recent quarters, and the ongoing strength of sports rights.
Furthermore, the upcoming media rights renewals are expected to be a major catalyst for TKO’s future growth. With the company no longer in an exclusive negotiation period with ESPN, there is potential for multiple interested parties, which could lead to favorable outcomes for TKO. The analyst anticipates that TKO will strategically navigate these negotiations to maximize the value of their media rights and support long-term growth, particularly for the UFC. This strategic positioning, combined with the scarcity value of premium intellectual property in a fragmented media landscape, supports the Buy rating and the increased price objective of $200.
In another report released on June 18, Bernstein also maintained a Buy rating on the stock with a $190.00 price target.