TKO Group Holdings (TKO) PT Raised to $220 at TD Cowen

TD Cowen analyst Lance Vitanza raised the price target on TKO Group Holdings (NYSE: TKO) to $220.00 (from $200.00) while maintaining a Hold rating.

The analyst commented: "PT to $220 as We Incorporate Recent Financial Disclosure Around Acquired Assets; As it integrates recently acquired assets, we expect elevated earnings and cash flow growth for the foreseeable future. Though TKO trades at a substantial discount to its closest comp, despite an equal-to-better growth profile over near, medium, and longer terms, our PT reflects modest multiple compression to 20x FY26E Adj. EBITDA (vs. 22x FY25E today) and thus could prove conservative, we think.

On February 28, TKO acquired On Location, Professional Bull Riders, and a significant portion of the assets of IMG from its now privately held parent company Endeavor. Based on previously limited financial information in the public domain, we had forecast pro forma EBITDA growth of 13% for FY25E, accelerating to approximately 30% in FY26E. Hardly shabby, we had argued a $200 one-year price target was warranted."

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
• Home Depot (HD) call put ratio 1.5 calls to 1 put with a focus on September 330 puts into quarter results