Interactive Brokers shares jump as it secures spot in S&P 500
Bernstein SocGen Group reiterated its Outperform rating and $190.00 price target on TKO Group Holdings (NYSE:TKO) Monday. The stock, currently trading at $167.96, has delivered an impressive 61.5% return over the past year and sits near its 52-week high of $179.09.
The firm cited TKO’s position as a dominant combat sports intellectual property owner with multiple growth opportunities in live sports entertainment. Bernstein expects the upcoming UFC rights renewal to exceed $1 billion annually, while live events and sponsorship growth continue to show positive momentum. With revenue growing at 10% and a robust gross margin of 69.8%, InvestingPro data reveals strong fundamental performance.
The research firm believes WWE’s ongoing transformation will drive efficiency gains and cost savings, leading to margin expansion slightly above current market consensus. Recent acquisitions by parent company Endeavor are expected to enhance TKO’s long-term growth outlook. According to InvestingPro, which offers 15+ additional exclusive insights about TKO, analysts anticipate continued sales growth this year.
Bernstein noted these acquisitions incorporate "attractive superfan exposure" to major sporting events including the FIFA World Cup and upcoming Olympics in Los Angeles and Milan. This adds to the company’s near-term growth potential.
The firm also highlighted TKO’s strategy of "festivilizing" its live events as a compelling growth opportunity, particularly regarding site fees. This approach aligns with the company’s broader strategy for sustained growth in the sports entertainment sector.
In other recent news, TKO Group Holdings reported its first-quarter 2025 earnings, surpassing analyst expectations with an EPS of $0.69, compared to the forecast of $0.57. The company also exceeded revenue forecasts, reporting $1.27 billion against the anticipated $703.74 million. Following the earnings announcement, TD Cowen raised TKO’s price target to $220, maintaining a Hold rating, citing significant earnings and cash flow growth from recent acquisitions. Additionally, TKO Group declared a quarterly cash dividend of $0.38 per share, totaling approximately $75 million, to be paid on June 30, 2025. Analysts at Bernstein SocGen initiated coverage on TKO Group with an Outperform rating, highlighting the company’s strong position in combat sports and growth potential. Benchmark analysts maintained a Hold rating, noting uneven organic growth despite strong overall performance. TKO’s recent acquisitions, including On Location and Professional Bull Riders, are expected to contribute positively to the company’s earnings and financial outlook.
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