With TKO Group Holdings TKO stock up over 30% year-to-date, assisted by a brand-new media rights handle Paramount Skydance PSKY, an expert is relocating to the sidelines with a score downgrade.
The TKO Expert: Seaport Research study expert David Joyce reduced TKO stock from Buy to Neutral without any rate target.
See how TKO stock is doing here.
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The Expert Takeaways: Joyce stated he was “getting out of the ring” with TKO stock in a brand-new financier note.
The downgrade follows TKO stock went beyond the base case assessment of $188 and neared the $209 upside case assessment formerly set out.
” With the essential TKO modification representative having actually been revealed– the larger-than-expected domestic UFC rights handle Paramount Skydance– we believe much of the business’s development has actually been priced in,” Joyce stated.
While the expert downgrades the stock, the brand-new report points out locations like Zuffa Boxing, sponsorships, WWE offers and OnLocation occasions that might offer more development. Joyce stated the downgrade might show to be conservative if the boxing sector reveals “much better economics quicker instead of later on.”
” We stay positive on the development chance set for TKO, however would brighten up direct exposure with some softening labor information (possibly more pertinent to WWE than UFC, based upon ticketing rate points).”
Joyce stated it might be “sensible” to take earnings on stocks in the live occasion and experiences area like TKO Group stock.
” If the current softening in labor information is a prospective indication for the forward health of the customer, relating in TKO’s case to occasion presence, rates, and secondary costs, then even more keeping track of and care needs to be increased.”
The expert stated 2026 quotes consist of the brand-new media rights handle Paramount Skydance and the contrast of the variety of occasions from year to year.
What’s Next: Not consisted of in the financier note from Joyce is the upcoming UFC battle at the White Home on July 4.
This battle, which was just recently validated as occurring by UFC CEO Dana White, might be a significant driver for UFC and for TKO Group stock.
Reports show strong interest from leading fighters for the UFC occasion that might consist of title battles, fighters taking part in their last battles before retirement and fighters returning to UFC out of retirement or after years far from the company.
While the battle will not have substantial presence due to the logistics of being at the White Home as the very first significant sporting occasion happening at this Washington D.C. place, it might offset that in other locations.
A UFC battle at the White Home might command premium viewership on CBS, where White suggested the battle would air, and likewise see strong marketing need.
While the UFC battle at the White Home has actually not been formally validated by the company and stays 10 months away, it is a driver that is most likely ignored by experts presently.
TKO Cost Action: TKO stock is down 2.41% on Tuesday to $195.64 versus a 52-week trading series of $113.16 to $200.71. TKO stock is up 37.3% year-to-date in 2025.
Picture: A. Ricardo through Shutterstock
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