TKO Group price target raised to $130 from $125 at Citi

Citi raised the firm’s price target on TKO Group (TKO) to $130 from $125 and keeps a Buy rating on the shares. With the stock around $80, the analyst sees a favorable 3:1 risk/reward with a $130 bull case and a $65 bear case. The firm is surprised that after TKO inked its new Netflix agreement the shares languished. This was a far more bullish outcome than many investors expected, the analyst tells investors in a research note. Citi attributes the share weakness to the potential use of TKO’s balance sheet to fund an Endeavor Group (EDR) privatization, the company’s pending lawsuit with former UFC fighters and WWE’s founder Vince McMahon selling of shares. The firm sees a “compelling” risk/reward at current share levels.