TKO Group: Seaport downgrades to Neutral, says ‘priced for perfection’
Investing.com-- Seaport downgraded its rating on media conglomerate TKO Group Holdings Inc (NYSE: TKO ), stating that its share price already reflected recent positive catalysts, and now demanded a more tempered stance.
Seaport cut TKO to Neutral from Buy.
The brokerage said that TKO had appreciated sharply on a recent share purchase agreement with controlling shareholder SilverLake. The conglomerate had also benefited from increased optimism over a multi-bidder process for its lucrative UFC media rights, which could double the contract value.
Given all this, Seaport sees TKO as “roughly priced for perfection.”
“We feel the low-hanging fruit of share appreciation has been achieved, with the shares having surpassed our prior blended $155/sh valuation view,” Seaport analysts said in a note.
TKO was formed through the merger of World Wrestling Entertainment and Zuffa LLC- the parent company of UFC. The merger brought together two major entertainment and combat sports brands.
TKO shares are trading up nearly 24% so far in 2025, and hit a record high on Tuesday.