TKO Group Holdings (TKO – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on the stock and has a $215.00 price target.
Jeffrey Wlodarczak has given his Buy rating due to a combination of factors that highlight TKO Group Holdings’ strong financial performance and strategic positioning. The company reported solid first-quarter results and increased its revenue and EBITDA guidance for both UFC and WWE, prompting an upward revision of forecasts and a $20 increase in the year-end 2025 target price to $215. The decision to extend the discounted cash flow model to 2029 further underscores the potential upside in TKO’s valuation.
TKO’s control over unique sports and entertainment assets, with a massive global fan base, positions it well in the competitive media landscape. The high EBITDA margins and substantial free cash flow conversion rates indicate robust financial health, while the potential for increased media rights fees and monetization opportunities through live events, advertising, and sponsorships offer significant growth prospects. Additionally, the entrance of internet streaming players into sports rights bidding is expected to drive up rights fees, benefiting TKO’s revenue streams. Despite some risks, such as M&A activity and dependence on star talent, the overall outlook for TKO remains positive, justifying the Buy rating.
In another report released on April 28, Susquehanna also initiated coverage with a Buy rating on the stock with a $180.00 price target.