Guggenheim says Saudi Arabia investment not ‘game changer’ for UFC

Guggenheim says shares of WWE (WWE) and Endeavor Group (EDR) have been under pressure since the Professional Fighters League announced a minority investment by a vehicle backed by Saudi Arabia’s sovereign wealth fund. However, the firm does not view the news as “a game changer” relative to the UFC’s mixed martial arts dominance. The investment is not material enough to allow PFL to compete in depth of champions across weight classes with the UFC or start developing a monetization ecosystem to sustainably compete against the UFC, the analyst tells investors in a research note. Guggenheim continues to view PFL as “the minor leagues.” It remains bullish on the pending combination of WWE and Endeavor and Endeavor remains its best idea. The firm has a Buy rating on both stocks.