TKO Group Holdings, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Benjamin Swinburne from Morgan Stanley maintained a Hold rating on the stock and has a $205.00 price target.
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Benjamin Swinburne’s rating is based on a combination of factors that suggest a balanced outlook for TKO Group Holdings. The company’s recent third-quarter results exceeded expectations, primarily due to the early commencement of the ESPN deal with WWE and strong performance in the IMG segment. However, the UFC segment underperformed due to event timing issues.
Looking forward, TKO is expected to benefit significantly from new media rights agreements, which are anticipated to drive substantial EBITDA growth by 2026. Despite these positive indicators, the current valuation of TKO shares appears to already reflect these future growth prospects, leading to a balanced risk/reward scenario. Consequently, Swinburne maintains a Hold rating, suggesting that while the company is well-positioned for growth, the stock’s current price level may not offer significant upside potential.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TKO in relation to earlier this year.