WWE is celebrating a boom in popularity right now, and their parent company, TKO is raking in the cash. Some believe that RAW’s new Netflix deal has given a huge surge for the company’s stock price.
TKO Group Holdings experienced a significant surge of over 7% in mid-day trading, reaching around $86 per share. Bank of America raised TKO’s price target, attributing the optimism to the company’s recent partnership with Netflix.
TKO’s Stock Price Surge
On Monday, Citi reiterated its Buy rating on TKO Group Holdings (NYSE: TKO) and raised the stock price target to $130 from $125. This adjustment came after TKO Group’s recent deal with Netflix (NASDAQ:NFLX), which didn’t cause the expected increase in the company’s share price.
Citi’s analysis identifies three factors impeding the stock’s performance: the potential EDR transaction, the ongoing UFC lawsuit, and McMahon’s share sales. Despite these challenges, Citi sees a favorable risk-reward balance for TKO Group, with the current share price of around $80 offering significant upside potential to their $130 bull case scenario and limited downside to their $65 bear case.
Wednesday morning saw TKO trading up over 7%, reaching around $86 by mid-day. Bank of America has also raised its price target for TKO, attributing the increase to optimism surrounding the Netflix deal.
This is certainly a good sign for the company as they round the corner into the road to WrestleMania 40, a time when they historically see another surge in business.
Vince McMahon’s Resignation From WWE
Vince McMahon was removed from power after Janel Grant’s lawsuit exposed a number of heinous allegations, including sex trafficking and assault. He resigned from his position with the company after Slim Jim pulled their sponsorship prior to the 2024 Royal Rumble event.
Since McMahon’s departure, WWE has continued to grow, and their new Netflix deal is a sign of that. Only time will tell where RAW goes from November to December 2024, as USA Network and Netflix’s deal has a three-month gap. They will certainly cash in with a huge Netflix deal once 2025 starts.
SEScoops will have more on this story, and many more, as we continue down the road to WrestleMania 40. For more on this story, and so many more headlines, please keep checking back throughout the day.
