Bernstein SocGen Sees Big Upside in TKO Group Holdings, Inc. (TKO)

On Wednesday, Bernstein SocGen Group began coverage on TKO Group Holdings, Inc. (NYSE:TKO) with an Outperform rating and a price target of $190, signaling a surge of around 16% from the current stock price. This move highlights the company’s strong footing in the combat sports intellectual property and the growth prospects driven by its multiple streams.

The smart WWE-UFC merger positions the company well as a live-sports powerhouse, with solid revenue growth, expanding margins, and big things still ahead. The analysts expect renewed UFC media rights to surpass $1 billion annually. With live events and sponsorships still gaining traction, the current $730 million EBITDA is in the right direction to grow even further.

From cost savings and higher margins to de-risking revenue from fluctuations in the advertising industry, the Netflix deal sets a global stage for WWE by leveraging worldwide streaming. Keeping in view the current ratio of 1.25 and moderate debt levels, we can safely say that the growth initiatives by TKO Group Holdings, Inc. (NYSE:TKO) are backed by solid financial stability.

Endeavor’s latest acquisitions are considered another way to enhance TKO Group Holdings, Inc. (NYSE:TKO) growth initiatives in the long term. With exposure to top-tier events like the FIFA World Cup and the Olympics, along with a focus on its live events stream like the Kansas City Takeover in April, the giant knows what it’s doing.

TKO Group Holdings, Inc. (NYSE:TKO) is a New York-based premium sports and entertainment company. Incorporated in 2023, the company, a subsidiary of Endeavor Group Holdings, Inc., owns sports and entertainment intellectual property, while licensing live events and other content through digital means.

While we acknowledge the potential of TKO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TKO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure. None.