BofA Analyst Hikes TKO Group Holdings Price Target After Q1 Report

TKO Group Holdings, Inc. (NYSE:TKO) has kicked off 2025 on a strong note, with the performance of its UFC and WWE brands drawing praise from analysts on Wall Street. BofA analyst Brent Navon recently reiterated a Buy rating on the stock and raised the price target to $185 from $175 following the company’s solid first quarter 2025 results.

The company exceeded expectations with revenue and adjusted earnings in the first quarter, showcasing a 4% increase in revenue to $1.26 billion. The revenue growth was driven by the strong performance of both the UFC and WWE brands. WWE saw a $74.8 million increase in revenue to $391.5 million, while UFC revenues increased by $46.7 million to $359.7 million. Additionally, net income surged by $400 million from a net loss of $234.5 million in the same quarter the previous year to $165.5 million.

The positive momentum has prompted TKO Group to update its full-year guidance, incorporating the recent acquisitions of IMG, On Location, and PBR. These acquisitions are expected to enhance the company’s portfolio of intellectual properties, positioning it to capitalize on the growing sports and entertainment ecosystem.

BofA’s price target hike also reflects the strategic position of TKO Group as it anticipates media rights renewals amidst significant growth in live events. The company’s sponsorship revenue streams are also on an upward trajectory, bolstering its overall financial outlook.

TKO Group Holdings Inc. specializes in combat sports and entertainment, monetizing intellectual property through various channels such as media rights, live events, sponsorships, and licensing. With a focus on UFC and WWE, the company generates revenue primarily from media rights, ticket sales, and sponsorships.

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In conclusion, TKO Group Holdings’ robust start to 2025, driven by the performance of its UFC and WWE brands, has positioned the company for continued growth and success in the sports and entertainment industry. Investors are advised to stay updated on the latest developments in both the company and the broader market landscape for potential investment opportunities.