TKO Group Holdings (TKO) PT Raised to $225 at Guggenheim

Guggenheim analyst Curry Baker raised the price target on TKO Group Holdings (NYSE: TKO) to $225.00 (from $205.00) while maintaining a Buy rating.

The analyst comments "We have updated our TKO model, modestly raising our above-consensus 3Q revenue ($1.11bn up from $1.10bn) and adjusted OIBDA ($387mm up from $381mm) outlook. We raised our outlook at WWE on a strong live events slate (including the last-minute addition of WrestlePalooza and a strong, two-night SummerSlam, including a reported $7mm site fee), the pull-forward of the ESPN PLE rights agreement, and continued sponsorship momentum. Our UFC outlook was lowered modestly on the timing of PPV events and tough UFC Sphere comp (one-time event). Our full-year adjusted OIBDA outlook of $1.615bn remains above consensus and management's guidance range of $1.54bn to $1.56bn. We now also include the $1bn of share repurchases announced by the company, including an $800mm ASR (link). TKO has renewed both the UFC (link, details below) and the WWE PLE media rights (link); we expect core WWE/UFC execution, capital returns, and boxing optionality to be key to shares going forward. Price Target up to $225 (from $205)."

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