TKO Group price target raised to $210 from $200 at BofA

BofA raised the firm’s price target on TKO Group (TKO) to $210 from $200 and keeps a Buy rating on the shares after the company announced Paramount (PSKY) acquired the domestic broadcast rights to the UFC for seven years at an average annual value of $1.1B, which represents a greater-than-expected two-times step up from the existing deal with Disney’s (DIS) ESPN. The deal “comes as a surprise” in terms of both the partner and dollar amount given the recent change in control at Paramount and expectations that large streamers had a desire to increase their presence in sports, the analyst tells investors. This deal is not inclusive of international rights, though it appears Paramount may have interest as they come up for renewal, which still provides additional sources of monetization for UFC, adds the analyst, who calls the agreement “an encouraging outcome.”