TKO Group stock price target raised to $235 from $200 at UBS

Investing.com - UBS raised its price target on TKO Group Holdings (NYSE:TKO) to $235.00 from $200.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently trading near its 52-week high of $212.49, has demonstrated strong momentum with a remarkable 67% return over the past year. According to InvestingPro data, TKO maintains a healthy financial position with a "GOOD" overall health score.

The firm cited potential upside from renegotiated media rights and enhancements to the capital returns program as key factors that have driven the stock’s recent performance.

UBS expects incremental monetization opportunities to extend growth and support upside to consensus estimates, particularly noting that broader reach with the new UFC deal has potential for audience expansion and faster growth in Partnerships & Marketing revenues.

The investment bank forecasts UFC/WWE partnership and marketing revenues to reach $605 million in 2027, approximately 10% above consensus estimates.

UBS projects TKO’s consolidated EBITDA will reach $2.39 billion in 2027, compared to the Street’s estimate of $2.30 billion, representing a 24% two-year compound annual growth rate, driven by media rights step-ups, contractual escalators, continued execution in live events, and high flow-through.

In other recent news, TKO Group Holdings has announced a significant $1 billion share repurchase program. This includes an $800 million accelerated share repurchase agreement for its Class A common stock, alongside plans for a 10b5-1 trading plan to repurchase up to an additional $174 million of shares. Additionally, the company completed a $26 million privately negotiated share repurchase. TKO Group has also doubled its quarterly dividend to $0.76 per share, with Class A common stockholders set to receive the increased dividend. This move will distribute approximately $150 million to equity holders. On the analyst front, Baird initiated coverage on TKO Group with an Outperform rating, citing strategic positioning in the media landscape. Jefferies raised its price target to $250 from $220, reflecting potential upside from a newly announced seven-year, $7.7 billion UFC rights deal. Furthermore, Guggenheim increased its price target to $205, following the announcement of a new UFC media rights deal with Paramount, which will stream all UFC numbered events and Fight Nights on Paramount+ starting in 2026.

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