TKO Group price target lowered to $112 from $132 at Roth MKM

Roth MKM lowered the firm’s price target on TKO Group to $112 from $132 and keeps a Buy rating on the shares. The analyst says WWE’s recently announced U.S. Smackdown contract proved lower than anticipated and the firm’s outlook for the not yet completed Raw deal is now reduced. However, Roth’s revised revenue and adjusted EBITDA forecasts for 2024-2026 reflect above average annual growth of 11% and 17%, respectively, the analyst tells investors in a research note. The firm believes secular trends remain positive for sports rights and continues to view TKO as a “unique content company with significant growth potential.” Roth believes the stocks is oversold at current levels despite “valid concerns” following the lower than expected reported contract value increase for Smackdown.