Endeavor has ‘knockout growth potential’ from WWE-UFC combination, says BofA

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.