Endeavor, WWE selloffs present buying opportunity, says Morgan Stanley

Morgan Stanley analyst Benjamin Swinburne notes the 10%-15% sell off in WWE (WWE) and Endeavor Group (EDR) shares over the past two days following reports of a $100M minority investment in MMA competitor the Professional Fighters League, or PFL, by a fund controlled by Saudi Arabia’s Public Investment Fund. The reaction stems from the PIF’s prior disruption of the PGA through its LIV Golf venture, but the firm believes shares of both are oversold and sees this “as a compelling opportunity,” the analyst tells investors. The UFC is the world’s most popular MMA league and competition is “not new”; the PIF’s investment will not impact UFC or WWE financials “anytime soon”; and the PIF investment in the PFL is unlikely to have any impact on WWE’s upcoming renewals, the analyst contends. Morgan Stanley has an Overweight rating and $30 price target on Endeavor shares.