BofA analyst Jessica Reif Ehrlich believes the revenue synergy opportunity from the proposed merger of UFC and WWE (WWE) is underappreciated and projects there may be upward of $200M in revenue synergies in the first 24 months. This is in addition to any potential domestic rights benefits that could be extracted by selling co-terminus agreements of the UFC/WWE, or at least providing optionality in how rights packages and buyers can be structured, and in addition to management’s $50M-$100M expense synergy target and guidance of $250M-$400M in overlapping costs between the two companies, says the analyst, who sees "knockout growth potential" for Endeavor Group (EDR) from the combination. BofA reiterates a Buy rating and $28 price target on Endeavor shares.
Published first on TheFly
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