Morgan Stanley analyst Benjamin Swinburne upgraded WWE to Overweight from Equal Weight with a price target of $120, up from $105. The analyst sees TKO, the combined WWE and UFC business, which investors can gain exposure to through WWE shares today, as offering an attractive risk/reward given the "secular tailwinds" behind sports and entertainment media rights revenues, live content, and the "defensive characteristics" of largely contracted revenue growth. The pending UFC-WWE transaction creates value and a pure-play sports and entertainment equity, the analyst tells investors in a research note. The firm sees clear cost synergies "while the revenue opportunities are also potentially meaningful."
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Published first on TheFly
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