TKO (US:TKO) Benzinga·2025-09-09 17:16Core Viewpoint - TKO Group Holdings' stock has increased over 30% year-to-date, primarily due to a new media rights deal with Paramount Skydance, but an analyst has downgraded the stock from Buy to Neutral, indicating that much of the company's progress has already been priced in [1][2][3]. Company Performance - Seaport Research analyst David Joyce downgraded TKO stock from Buy to Neutral with no price target, as the stock surpassed the base case valuation of $188 and approached the upside case valuation of $209 [2][3]. - The stock is currently down 2.41% to $195.64, with a year-to-date increase of 37.3% [7]. Growth Opportunities - Despite the downgrade, areas such as Zuffa Boxing, sponsorships, WWE deals, and OnLocation events are highlighted as potential growth drivers for TKO [3]. - The analyst noted that the downgrade could be conservative if the boxing segment shows improved economics sooner than expected [3]. Market Conditions - Recent softening in labor data may impact consumer behavior related to event attendance, pricing, and ancillary spending, warranting increased caution [4]. - The 2026 estimates will include the new media rights deal and year-over-year event comparisons [4]. Upcoming Events - An upcoming UFC fight at the White House on July 4 could serve as a significant catalyst for TKO Group stock, despite logistical challenges limiting attendance [5][6]. - The fight is expected to generate premium viewership on CBS and strong advertising demand, although it remains unofficial and is still 10 months away [6][7].