Report by Northcoast Research
Iron sharpens iron - the combination of the UFC and WWE assets brings together two unique and exceptionally entrepreneurial leadership teams to create a combined sports juggernaut with the opportunity to leverage each other’s strong suits and propel TKO to new heights. In thinking through the core business of each operator, Northcoast sees a mid-to-high-single digit organic growth rate excluding any major step in rights renewals. Given this growth rate and roughly 70% of revenues contractually positioned each year, they feel the quality of earnings and cash flow is high. Northcoast initiates coverage with a Buy rating and TP of $105.