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Investing.com - TKO Group Holdings (NYSE:TKO), currently trading at $186.02 and showing impressive momentum with a 10.13% gain over the past week, received a price target increase from Guggenheim on Tuesday, with analyst Curry Baker raising the target to $205.00 from $200.00 while maintaining a Buy rating.
The price target adjustment follows TKO’s announcement of a new UFC media rights deal with Paramount. Beginning in 2026, all UFC numbered events and Fight Nights will stream on Paramount+, with select events simulcast on CBS under the seven-year agreement valued at an annual average of $1.1 billion with standard escalators. According to InvestingPro data, TKO maintains a strong financial position with a healthy current ratio of 1.3 and operates with moderate debt levels.
The new media rights agreement exceeds Guggenheim’s previous forecast, with the firm now projecting UFC’s media rights at $920 million for 2026 compared to $890 million in its prior estimate. The deal also includes approximately two minutes per hour of advertising inventory for each event, which represents incremental revenue beyond the current rights arrangement with Disney/ESPN.
Guggenheim raised its 2026 UFC revenue outlook by approximately $45 million and adjusted OIBDA by roughly $30 million following the announcement. The firm noted that cash payments are weighted toward the later years of the agreement.
TKO Group has now renewed both the WWE PLEs and the UFC contract, with Guggenheim expecting investors to focus on core UFC/WWE execution, boxing opportunities, and capital returns going forward. With a robust gross profit margin of 74.81% and expected sales growth this year, TKO shows promising fundamentals. For deeper insights into TKO’s valuation and growth prospects, InvestingPro offers 15 additional investment tips and comprehensive financial analysis.
In other recent news, TKO Group Holdings announced a significant new media rights agreement with Paramount for the UFC, set to begin in 2026. The seven-year deal, valued at approximately $1.1 billion per year, covers all UFC events, including 13 numbered events and 30 Fight Night events. Following this announcement, multiple analyst firms adjusted their outlooks on TKO Group. UBS maintained its Buy rating with a price target of $164, emphasizing the importance of the new deal. Wolfe Research raised its price target to $211, citing expectations for improved long-term free cash flow. BofA Securities also increased its price target to $210, maintaining a Buy rating due to the Paramount deal. Similarly, Goldman Sachs raised its price target to $202, noting the deal’s significant financial impact compared to the previous contract. Morgan Stanley (NYSE:MS), however, maintained its Equalweight rating and $165 price target, highlighting the expanded reach through new distribution channels. These developments reflect the market’s response to TKO Group’s strategic media rights agreement.
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