Seaport Research Partners cut its rating on TKO to Neutral from Buy, saying the stock has priced in much of the progress following the company’s new domestic UFC rights deal with Paramount Skydance.
“With the key TKO change agent having been announced -- the larger-than-expected domestic UFC rights deal with Paramount Skydance - we think much of the company progress has been priced-in,” analysts David Joyce wrote.
Shares trade at about 19 times 2026 estimated EV/EBITDA, above Seaport’s base case valuation.
The brokerage said it remains constructive on TKO’s growth prospects, but near-term drivers such as Zuffa Boxing, site license fees, sponsorship gains, and advertising tied to new UFC and WWE rights deals still need to be proven out.
“We would be more constructive if there is a broader market drawdown,” Seaport noted.
Analysts highlighted positives, including a dividend increase and an extended partnership with Las Vegas’ T-Mobile Arena, but said execution risks remain around the company’s new boxing initiative and sponsorship ramp.
At about $199, the stock is trading above Seaport’s $188 base case and close to its $209 upside scenario, limiting further gains.
Source :
https://www.investing.com/news/stock-market-news/tkos-ufc-rights-deal-leaves-limited-upside-now-4231565
