Citi says market ‘too bearish’ on Endeavor acquisition of WWE

Citi analyst Jason Bazinet believes the Street is "too bearish" on Endeavor Group’s (EDR) acquisition of WWE (WWE). The analyst understands why WWE traded lower, saying some investors were likely looking for an all-cash offer, but is confused by the weakness in Endeavor’s share price. The remaining Endeavor company "may be the most mispriced," the analyst tells investors in a research note. Citi built pro forma models for the new company, which will trade under ticker "TKO," and Endeavor’s remaining company, and believes both stocks look inexpensive. The firm keeps a Buy rating on both WWE and Endeavor Group.