TKO Group initiated with a Buy at UBS

UBS analyst Ryan Gravett initiated coverage of TKO Group with a Buy rating and $123 price target. Through the combination of WWE and UFC, TKO is a “rare pure-play” in live sports entertainment where rights renewals and merger synergies should enable 15% annual EBITDA growth, “rapid de-leveraging” and $4B of capacity for shareholder returns through 2027, the analyst tells investors in a research note. The firm believes efforts to take sports direct-to-consumer will sustain demand, particularly as streaming migrates to ad-supported platforms where engagement and large audiences are key.