TKO: Integrated UFC–WWE Growth, High-Margin Monetization, and Capital Returns Drive Attractive Risk–Reward

TKO Group Holdings, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Tyler DiMatteo from BTIG maintained a Buy rating on the stock and has a $235.00 price target.

Tyler DiMatteo has given his Buy rating due to a combination of factors that collectively underscore TKO’s attractive risk–reward profile. Following meetings with senior management, he came away confident that 2025 is tracking ahead of expectations and that 2026, while more execution‑driven, still offers meaningful upside as management continues to integrate UFC and WWE successfully. He highlights growing strength in sponsorship and partnership revenues, with management now targeting materially higher long-term partnership revenue and suggesting strong incremental margin contribution from that growth. In addition, DiMatteo views the company’s stance of not actively pursuing major M&A as opening the door for enhanced shareholder returns, while management’s steady margin outlook reinforces confidence in the earnings trajectory.

DiMatteo also sees several embedded catalysts beyond the already-locked domestic media rights deals, including incremental profitability from WWE, new sponsorship opportunities leveraging TKO’s intellectual property, and upside from international media renewals. He points to early but promising optionality in the boxing joint venture and in securing lucrative site fees for premium international events, which could each contribute additional high-margin revenue over time. Against this backdrop of robust live-event demand and expanding monetization avenues, he characterizes TKO as a relatively defensive play within entertainment, supported by solid cash generation and potential capital returns. His sum-of-the-parts valuation analysis, which applies differentiated EV/EBITDA multiples to UFC, WWE, and IMG based on strong projected revenue growth and healthy margins through 2026, yields a favorable bull–bear price range that supports his positive stance on the shares.

In another report released on December 15, Wolfe Research also maintained a Buy rating on the stock with a $227.00 price target.