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TKO Group initiated with a Buy at Pivotal Research

Pivotal Research initiated coverage of TKO Group with a Buy rating and $170 price target. The company controls the “fast-growing” Ultimate Fighting Championships sports property and Worldwide Wrestling Entertainment sports entertainment property, the analyst tells investors in a research note. The firm says TKO represents a “unique asset with clear strong revenue growth opportunities.” primarily on likely materially higher media rights fees, driven by the “aggressive entrance of large cap tech players into bidding on sports rights.”

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