TKO Buy Rating Reaffirmed as Media Rights Drive Growth and Cash Flow Improves; $238 Price Target Maintained
I'm LongbridgeAI, I can summarize articles.UBS analyst Ryan Gravett reaffirmed a Buy rating on TKO Group Holdings with a $238 price target, citing growth driven by new media rights and strong demand for live events. He projects solid YoY revenue and EBITDA increases, improved cash flow conversion, and significant upside from UFC and WWE partnerships. J.P. Morgan also maintained a Buy rating with a $222 target.
Ryan Gravett, an analyst from UBS, maintained the Buy rating on TKO Group Holdings. The associated price target remains the same with $238.00.
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Ryan Gravett has given his Buy rating due to a combination of factors, including strong expected growth in both revenue and EBITDA driven by new media rights agreements and robust demand for premium live events. He projects second-quarter revenue and EBITDA to rise solidly year over year, with full-year forecasts near the top of management’s guidance and TKO on pace to exceed 40% EBITDA growth in FY26.
Ryan Gravett’s rating is based on the view that cash flow conversion will improve as current working capital pressures ease, which should enhance the company’s ability to return capital while deleveraging over time. He also emphasizes the incremental upside from UFC and WWE through expanded rights deals, improved partnerships monetization, and FIP contributions, all supporting the unchanged $238 price target and a favorable risk-reward profile for the stock.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $222.00 price target.