Roth Capital Raises Price Target for TKO Group | TKO Stock News

Roth Capital has increased its price target for TKO Group (TKO, Financial) from $185 to $208, while maintaining a Buy rating on the stock. This adjustment follows TKO’s first-quarter results, which surpassed expectations, and an upward revision of its core guidance for 2025. The integration of IMG into the company’s projections aligns with revenue expectations, although it falls short on adjusted EBITDA due to temporary factors. Despite these discrepancies, Roth Capital remains optimistic about TKO’s growth prospects in the long run.

Wall Street Analysts Forecast

Based on the one-year price targets offered by 19 analysts, the average target price for TKO Group Holdings Inc (TKO, Financial) is $172.16 with a high estimate of $220.00 and a low estimate of $115.00. The average target implies an upside of 1.89% from the current price of $168.96. More detailed estimate data can be found on the TKO Group Holdings Inc (TKO) Forecast page.

Based on the consensus recommendation from 20 brokerage firms, TKO Group Holdings Inc’s (TKO, Financial) average brokerage recommendation is currently 1.8, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

TKO Key Business Developments

Release Date: May 08, 2025

• Total Revenue: $1.269 billion, an increase of 4%.
• Adjusted EBITDA: $417 million, an increase of 23%.
• Adjusted EBITDA Margin: 33%, up from 28% in the prior year period.
• UFC Revenue: $360 million, an increase of 15%.
• UFC Adjusted EBITDA: $227 million, an increase of 17%.
• UFC Adjusted EBITDA Margin: 63%, up from 62% in the prior year period.
• WWE Revenue: $392 million, an increase of 24%.
• WWE Adjusted EBITDA: $194 million, an increase of 38%.
• WWE Adjusted EBITDA Margin: 50%, up from 44% in the prior year period.
• IMG Revenue: $476 million, a decrease of 13%.
• IMG Adjusted EBITDA: $74 million, a decrease of 10%.
• Free Cash Flow: $136 million, with a conversion rate of 32%.
• Debt: $2.776 billion.
• Cash and Cash Equivalents: $471 million.
• Restricted Cash: $159 million.
• Full Year 2025 Revenue Guidance: $4.49 to $4.56 billion.
• Full Year 2025 Adjusted EBITDA Guidance: $1.49 to $1.53 billion.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TKO Group Holdings Inc (TKO, Financial) reported strong first-quarter revenue and profitability, exceeding internal expectations and leading to an increase in full-year guidance.
• The UFC segment achieved record-breaking live events, including the highest-grossing fight night in company history and a record-setting event in Australia.
• WWE’s partnership with Netflix has significantly increased international viewership and engagement, with WWE content becoming a mainstay on Netflix’s global top 10.
• The acquisition of IMG on Location and PBR is expected to drive top-line growth and cost synergies, with early benefits already being realized.
• TKO Group Holdings Inc (TKO) has secured major partnerships, including a multi-year agreement with Monster Energy and a groundbreaking partnership with Meta, enhancing UFC’s global reach and fan engagement.

Negative Points

• The IMG segment experienced a 13% decline in revenue, primarily due to lower on-location activity for the Super Bowl and collegiate bowl games.
• There are concerns about potential macroeconomic impacts, with TKO Group Holdings Inc (TKO) monitoring consumer behavior and market conditions closely.
• The company faces challenges in securing new media rights agreements for PBR, with the loss of a domestic media rights agreement impacting revenue.
• The integration of acquired businesses involves significant corporate allocations and adjustments, which may affect financial reporting and transparency.
• Despite strong performance, TKO Group Holdings Inc (TKO) remains cautious about potential economic uncertainties and their impact on marketing budgets and premium experiences.