World Wrestling Entertainment Upgraded at Morgan Stanley, Newly Formed TKO is an Attractive Opportunity
<p><a href='https://financialmodelingprep.com/financial-summary/WWE'>World Wrestling Entertainment (NYSE:WWE)</a> was upgraded to Overweight from Equalweight by Morgan Stanley, with a new price target of $120.00 (from $105.00). The analysts said that investors can gain exposure to the attractive risk/reward of TKO, which is the new, publicly listed firm to be formed after <a href='https://financialmodelingprep.com/financial-summary/EDR'>Endeavor Group Holdings Inc. (NYSE:EDR)</a> combines with WWE in a deal valued at about $21 billion.</p>
<p>Morgan Stanley sees TKO as an attractive investment due to the secular tailwinds behind sports and entertainment media rights revenues, live content, and the defensive characteristics of largely contracted revenue growth. The proposed agreement between Endeavor Group Holdings and World Wrestling Entertainment results in the creation of pure-play sports and entertainment equity. The combination of these two companies, particularly with the inclusion of the Ultimate Fighting Championship (UFC), which is a rapidly growing and highly profitable global sport, is expected to create significant value.</p>
<p>The analysts believe that the value of this asset was and is not being captured in Endeavor shares, making TKO an attractive investment opportunity for investors looking to gain exposure to the growing sports and entertainment industry.</p>

NYSE:WWE