Saudi Arabia investment new overhang on WWE shares, says Wolfe Research

Wolfe Research keeps an Outperform rating on WWE (WWE) with a $137 price target after the Professional Fighters League partnered with SRJ Sports Investments, a fund controlled by Saudi Arabia’s Public Investment Fund, by acquiring a minority stake in the PFL. While there is room for all to succeed in the growing global mixed martial arts market, Saudi Arabia’s backing “augurs poorly” for WWE and UFC’s medium- and long-term talent costs, the analyst tells investors in a research note. The analyst attributes WWE’s 5% stock decline yesterday to the news. Wolfe thinks Professional Fighters League’s accelerating investment plans represent a new overhang on WWE’s and soon TKO’s valuation multiple.