Bernstein raises TKO Group stock price target on 2027 outlook

Bernstein raised its price target for TKO Group (TKO) to $240 from $235, maintaining an Outperform rating. The firm expects Q1 to be busy with guidance and an Investor Day. Key debates include partnership execution and growth potential. The Senate Commerce Committee is reviewing the Ali Revival Act, which could impact TKO's equity value.

WWE's content is now split across multiple platforms, with ESPN hosting premium live events and Netflix carrying Raw and international programming. TKO Group Holdings (TKO) reports a 12% revenue increase in Q2 2026, driven by the ESPN deal, with media rights offsetting declines in live events. The company's stock is down 16% from its 52-week high, reflecting concerns about platform dependence and contract renewals.

TKO Group's Mark Shapiro denied rumors of acquiring Formula One, stating it's not for sale and TKO is focused on execution. TKO reported Q2 revenue of $1.55B, up 18%, and adjusted EBITDA of $650M, up 23%. The company raised its 2026 revenue guidance to $5.77B-$5.82B. Analyst Randy Konik praised TKO's performance and growth prospects.

TKO Group Holdings (NYSE:TKO) reported Q2 2026 revenue of $1.547B, up 18%, and net income of $303.9M, up from $273.1M. All segments grew, leading to raised full-year guidance. Management returned $1.3B to shareholders. Legal costs and debt levels were noted as concerns.

TKO Group Holdings (TKO), with a $36.9B market cap, owns sports/entertainment properties like UFC and WWE. Its stock has lagged the S&P 500 over 52 weeks, up 4.7% vs. 19.3%. Q2 2026 revenue was $1.55B, adjusted EBITDA $650M. FY2026 guidance raised to $5.78B-$5.83B revenue, $2.28B-$2.31B EBITDA. Analysts' consensus rating is 'Strong Buy' with a mean price target of $229.55.

Moody’s upgraded TKO Worldwide Holdings’ corporate family rating to Ba1 from Ba2 and changed the outlook to stable from positive. It also raised the probability of default to Ba1-PD from Ba2-PD and upgraded senior secured first lien bank facilities to Ba1 from Ba2. Moody’s cited strong revenue growth, profitability and free cash flow expectations, projecting low-20% revenue and ~40% EBITDA growth in 2026.