UPDATE: Benchmark Upgrades World Wrestling Entertainment (WWE) to Buy

April 17, 2020 6:19 AM EDT
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Price: $49.02 -1.19%

Rating Summary:
    16 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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(Updated - April 17, 2020 7:46 AM EDT)

(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."

For an analyst ratings summary and ratings history on World Wrestling Entertainment click here. For more ratings news on World Wrestling Entertainment click here.

Shares of World Wrestling Entertainment closed at $39.67 yesterday.

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