Saudi investment in PFL a ‘new overhang’ on Endeavor Group, says BofA

BofA notes that a company formed by Saudi Arabia’s sovereign wealth fund acquired a minority stake in the Professional Fighters League, or PFL, earlier this week. Shares of WWE (WWE), which are a proxy for TKO (TKO), and those of Endeavor Group (EDR) have both significantly underperformed over the past two days as a result of the Saudi investment in the competitor to UFC, added the analyst. While this introduces a new overhang for both Endeavor and the product of the UFC/WWE merger, the firm says it continues to view Endeavor as “a collection of highly compelling assets that each, individually, have exposure to favorable secular tailwinds” and it keeps a Buy rating and $32 price target on the shares.