TKO Group initiated with a Buy rating, $100 target at Benchmark

As previously reported, Benchmark initiated coverage of TKO Group (TKO) with a Buy rating and $100 price target. The “top-tier sports and entertainment entity” that was established by merging the UFC combat sports brand under Endeavor (EDR) with WWE, operates “premier” combat and sports entertainment brands and manages “prized” intellectual property in the rapidly expanding global sports and media landscape, the analyst tells investors. Though the recent NBCUniversal (CMCSA) agreement for SmackDown fell short of expectations, the impending domestic rights fees for Raw and NXT, coupled with the UFC’s momentum, stand out as “major catalysts,” says the analyst, who adds that there is speculation with Fox (FOXA) stepping away that a bundled deal “could be in the cards” for either Disney (DIS) or Warner Brothers Discovery (WBD).