Endeavor Group Holdings (EDR), which owns a 51% stake in WWE and UFC parent company TKO Group Holdings, has Wedbush analysts bullish on the company after TKO announced a streaming deal with Netflix Inc (NASDAQ:NFLX).
Under the reportedly $5 billion deal, Netflix will broadcast TKO’s flagship show Raw every Monday night starting in 2025.
It will also make Netflix the primary provider for all WWE-related shows and live events such as WrestleMania, SummerSlam and Royal Rumble.
Endeavor shares traded higher on the news, up 3.3% at $25.42 shortly before noon on Tuesday.
The Wedbush analysts see the stock going even higher following the streaming deal, reiterating their $29 price target and a ‘Buy’ rating.
“Given EDR’s majority stake in the business, we believe this deal provides the company with ample upside to financial performance,” they wrote.
“We believe this deal further highlights the value of EDR’s management team - Ariel Emanuel is CEO of EDR and TKO while Mark Shapiro is president at EDR and TKO.”