BofA Analyst Hikes TKO Group Holdings Price Target After Q1 Report

TKO Group Holdings, Inc.’s (NYSE:TKO) solid start to 2025, characterized by the solid performance of UFC and WWE brands, has caught the attention of analysts on Wall Street. On May 26, BofA analyst Brent Navon reiterated a Buy rating on the stock and hiked the price target to $185 from $175. The hike comes on the company delivering solid first quarter 2025 results that surpassed expectations on revenue and adjusted earnings.

BofA Analyst Hikes TKO Group Holdings Price Target Buoyed by Solid Q1 Results

Photo by dylan nolte on Unsplash

The strength and momentum of UFC and WWE brands allowed TKO Group to deliver a 4% increase in revenue to $1.26 billion. WWE posted a $74.8 million increase in revenue to $391.5 million, as UFC revenues increased by $46.7 million to $359.7 million. On the other hand, net income increased by $400 million from a net loss of $234.5 million a year ago, same quarter, to $165.5 million.

The BofA price hike also comes with TKO Group updating its full-year guidance to reflect the addition of IMG, On Location, and PBR. The acquisitions are expected to strengthen the company’s portfolio of world-class IPs. The assets also position the company to capitalize on the momentum of the growing sports and entertainment ecosystem.

Additionally, the analyst has touted the strategic position the company remains in amid the expected media rights renewals that come when the company is experiencing significant growth in live events. In addition, TKO Group‘s sponsorship revenue streams are on a growth trajectory.

TKO Group Holdings Inc. is a sports and entertainment company specializing in combat sports. It owns and monetizes intellectual property through media rights, live events, sponsorships, and licensing. The company operates UFC and WWE, with UFC generating most revenue from media rights, ticket sales, and sponsorships.

While we acknowledge the potential of TKO Group Holdings, Inc. (NYSE:TKO) as an investment, 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 the cheapest AI stock.

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

Disclosure: None.