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Investing.com - Baird initiated coverage on TKO Group Holdings (NYSE:TKO) with an Outperform rating and a $225.00 price target on Friday. The company, currently valued at $37.7 billion, has seen its stock surge 64% over the past year, trading near its 52-week high of $194.76.
The research firm cited TKO’s strategic positioning at the intersection of key themes in the media landscape as a primary reason for the bullish outlook. InvestingPro data shows the company maintains a strong gross profit margin of 75% and healthy financial metrics, with analysts expecting continued net income growth.
Baird highlighted the recent rights deals for UFC and WWE, noting these agreements provide high visibility into future performance while establishing partnerships that strengthen the long-term value of brands across TKO’s portfolio.
The firm identified multiple potential growth drivers for TKO, including progress in boxing, site fees, dynamic pricing strategies, and additional partnerships.
These factors led Baird to conclude that TKO Group Holdings will "remain an attractive asset for investors" going forward.
In other recent news, TKO Group Holdings announced a significant 100% increase in its quarterly cash dividend, boosting the payout to $0.76 per share. This move will distribute approximately $150 million to equity holders, with the dividend payable on September 30, 2025. Alongside this, Jefferies raised its price target for TKO Group to $250, citing potential benefits from a new seven-year, $7.7 billion UFC rights deal. Guggenheim also increased its price target to $205, following a media rights agreement with Paramount, which will see UFC events streamed on Paramount+ starting in 2026. UBS maintained its Buy rating on TKO Group, reaffirming its $164 price target, after the announcement of the same UFC media rights deal. Wolfe Research raised its price target to $211, driven by expectations of improved long-term free cash flow growth. These developments highlight significant strategic moves and analyst confidence in TKO Group’s future performance.
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