Intel stock spikes after report of possible US government stake
Investing.com - Wolfe Research has raised its price target on TKO Group Holdings (NYSE:TKO) to $211.00 from $203.00 while maintaining an Outperform rating on the stock. The company, currently trading at $180 with a market cap of $35.69 billion, has demonstrated strong momentum with a 50.76% return over the past year. According to InvestingPro analysis, TKO maintains a GOOD financial health score, reflecting solid operational performance.
The firm cited expectations for higher long-term free cash flow with better free cash flow growth, which drove its 2027 price-to-free cash flow multiple to 28x, up from 27x previously.
Wolfe Research noted that despite 2027 free cash flow per share of approximately $7.70 (adjusted for Olympics) being marginally lower, the better renewal offset the working capital drag from the back-half weighted nature of the deal.
The research firm stated that a premium multiple is appropriate for TKO Group as an intellectual property licensor whose core assets, WWE and TKO, grow revenue at high single digits with approximately 70% incremental margins.
Wolfe Research also highlighted that TKO Group has approximately 70% flow through to free cash flow, supporting the higher valuation target.
In other recent news, TKO Group Holdings has announced a significant seven-year media rights agreement with Paramount, valued at $7.7 billion. This deal will make Paramount the exclusive broadcaster of all UFC events in the United States, starting in 2026, with an average annual value of $1.1 billion. Following this announcement, BofA Securities raised its price target for TKO Group to $210, maintaining a Buy rating, while Goldman Sachs increased its target to $202, also retaining a Buy rating. Jefferies reiterated its Buy rating with a price target of $220, expressing confidence in TKO’s strategy regarding media rights. Morgan Stanley (NYSE:MS) maintained an Equalweight rating with a $165 price target, noting the expanded reach through CBS network exposure. The agreement will transition premium UFC events from ESPN+ to CBS, broadening national exposure. Analysts view this strategic move as a significant enhancement to TKO’s media presence.
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