Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Jefferies has reiterated its Buy rating on TKO Group Holdings (NYSE:TKO) stock, maintaining its price target of $220.00, representing significant upside from the current price of $176.76. According to InvestingPro data, the stock is trading near its 52-week high with a market capitalization of $14.5 billion.
The firm expressed confidence in TKO’s strategy of renegotiating media rights "while the iron is hot," noting this approach has "paid off handsomely" for the company.
Jefferies expects the UFC deal to deliver financial gains exceeding expectations and believes a new partnership will help propel the brand forward.
The firm highlighted that the WWE-ESPN agreement, combined with other developments, demonstrates the pricing power of TKO’s unique content and strengthens the company’s growth outlook by creating "highly visible revenue streams."
Jefferies remains bullish on TKO’s prospects, pointing out that "synergy realization remains underway with record-setting deals now on the books for both of its premium assets." With the stock currently trading at Fair Value, investors can access detailed analysis and 12 additional ProTips through InvestingPro’s comprehensive research report.
In other recent news, TKO Group Holdings Inc. reported strong financial results for the second quarter of 2025, with revenues reaching $1.31 billion, exceeding analysts’ expectations of $1.22 billion. The company’s earnings per share also beat forecasts, coming in at $1.17 compared to the anticipated $1.13. UBS responded to these results by raising its price target for TKO Group to $200 from $195, while maintaining a Buy rating, citing strong WWE performance as a key driver. Meanwhile, Benchmark maintained its Hold rating on TKO Group, pointing to structural concerns despite the solid headline growth.
The company faced declines in UFC live events and hospitality revenue due to site fee timing issues, as well as a contraction in IMG revenue from rights losses. In a significant development, TKO Group announced a seven-year media rights agreement with Paramount, valued at an average annual $1.1 billion. This deal will make Paramount the exclusive U.S. home for all UFC events starting in 2026. The agreement includes the distribution of 13 marquee numbered events and 30 Fight Nights annually via Paramount+, with some events also airing on CBS.
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