UPDATE: Benchmark Upgrades World Wrestling Entertainment (WWE) to Buy
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(updated to add analyst comments)
Benchmark analyst Mike Hickey upgraded World Wrestling Entertainment (NYSE: WWE) from Hold to Buy and $46 price target.
The analyst commented, "We are raising our rating to Buy and initiating a $46 price target. We are more encouraged on valuation as an economic reset strategy has become more visible; COVID-19 treatment options appear promising and the curve has flattened, we remain hopeful for a vaccine, greater immunity and rapid testing. WWE has negotiated most of their global TV rights deals and has qualified as an essential business in Florida, providing a contractual path for future growth. WWE recently announced an aggressive cost containment strategy, an acceptable response considering presumed COVID-19 negative impact, in our view. We believe WWE has achieved a significant reduction in monthly cash burn and does not appear to have any near-term liquidity issues. We assume their contractual TV rights fees are worth more than the current enterprise value of WWE if we use our pre-COVID-19 target multiple of 18x; more than sufficiently discounting our evolving view of COVID-19 implications. Declared a quarterly dividend of $0.12."
Shares of World Wrestling Entertainment closed at $39.67 yesterday.
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