World Wrestling Entertainment (WWE) PT Raised to $105 at Guggenheim

Guggenheim analyst Curry Baker raised the price target on World Wrestling Entertainment (NYSE: WWE) to $105.00 (from $94.00) while maintaining a Buy rating as the strategic review in the early stages and they remain bullish on the U.S renewal cycle.

The analyst commented, "WWE reported 2022 OIBDA of $385mm at the high end of guidance ($370-385mm) and slightly below our $390mm outlook. Management issued 2023 OIBDA guidance of $395-410mm, driven by record revenue and relative flat operating expenses (we are now at $415mm, down modestly from $427mm; in our view the guidance is conservative). There was limited incremental information around the strategic review: 1) still "early stages," 2) looking at a broad range of options, and 3) Executive Chairman Vince McMahon would be willing to step away in any theoretical sale if that maximized "shareholder value." We continue to see a tight window in 1H23 where the industrial logic of a sale would make sense to certain suitors ahead of the RAW and SmackDown rights renewals. On a fundamentals basis, we remain positive on the U.S. rights renewal. Underpinning our bullish outlook: 1) WWE remains relatively cheap compared to other sports on a rights fee paid per viewer hour delivered basis, 2) recent sports rights renewals in the U.S. have shown pricing strength, 3) newer entrants such as Amazon.com and Apple are increasingly bidding for sports rights, and 4) WWE's ratings have been decent this year (especially relative to the linear TV ecosystem broadly). Our PT goes from $94 to $105."

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