TKO Group Holdings: Strong Media Deals, Capital Returns, and Margin Expansion Potential Support Higher $250 Target and Buy Rating

Analyst Tyler DiMatteo from BTIG maintained a Buy rating on TKO Group Holdings and increased the price target to $250.00 from $235.00.

Tyler DiMatteo has given his Buy rating due to a combination of factors that underscore both strong recent execution and attractive forward prospects for TKO Group Holdings. He highlights that 2025 was an exceptionally solid year, marked by lucrative new media rights agreements for both UFC and WWE, robust growth in sponsorship and partnership revenues, and the successful completion of the IMG acquisition. In his view, these developments, along with an active capital return strategy via share repurchases and dividends, have materially strengthened the company’s fundamentals and justified a higher share price target of $250 despite the stock’s substantial appreciation. He also emphasizes management’s ability to translate the growing demand for sports and live entertainment into improved profitability, with the potential for notable margin expansion in 2026.

At the same time, DiMatteo acknowledges that the stock could experience short-term volatility as investors focus on 2026 guidance, particularly given that certain high-profile events, such as the White House fight, are expected to be more promotional than revenue-generating. However, he views these as largely one-off items that do not alter the broader positive trajectory of the business. His valuation work, based on a sum-of-the-parts EV/EBITDA framework for UFC, WWE, and IMG, supports a wide but favorable bull/bear range of $160–$305, reflecting strong projected revenue growth and healthy margins in each segment by 2026. Taken together, the resilient fundamentals, strong earnings and cash flow outlook, and compelling risk/reward profile justify maintaining a Buy rating alongside the increased price target.

According to TipRanks, DiMatteo is a 2-star analyst with an average return of 4.9% and an 80.00% success rate. DiMatteo covers the Communication Services sector, focusing on stocks such as TKO Group Holdings, Sphere Entertainment, and Madison Square Garden Sports.