Stock Forecast: TKO Group - Will Analysts Predict Its Ascent or Descent?
TKO Group Holdings Inc. Continues to Shine in Sports and Entertainment Sector
TKO Group Holdings Inc., a leading sports and entertainment company based in New York, has shown impressive financial performance in 2025. Despite some projected EPS decline, analyst ratings reflect optimism, and the company's stock has delivered significant returns.
Year-to-Date Returns and Stock Performance
As of August 26, 2025, TKO's stock price was $185.16, representing a 30.6% return year-to-date. The recent 5-day price change was +0.78%.
Recent Financial Performance
In Q2 2025, TKO reported revenue of $1.308 billion, a 10% increase from the same quarter last year. Net income was $273.1 million, with EPS of $1.17, exceeding analyst estimates of $1.05. Adjusted EBITDA was $526.5 million, with a 40% margin, up significantly from 25% in Q2 2024 due to operational efficiencies and growth in properties like UFC and WWE.
EPS Growth and Projections
Analyst projections indicate an earnings decline of -18.81% expected over the next year, with EPS anticipated to drop from $3.88 to $3.15. The elevated Price-to-Earnings (P/E) ratio stands at 76.75, suggesting the stock is trading at a premium relative to earnings.
Analyst Ratings and Price Targets
The consensus analyst rating is a Moderate Buy, based on 13 buy and 2 hold ratings with no sell ratings. Recent price target adjustments include JPMorgan increasing the target price from $182 to $212 and Seaport Global raising its price target from $187 to $200.
A Catalyst for TKO's Rally
A significant catalyst for TKO's rally is a seven-year, $7.7 billion exclusive media deal between UFC (under TKO) and Paramount Skydance. TKO brings together powerhouse entertainment brands such as UFC, WWE, PBR, IMG, and On Location Experiences.
Outperforming the Market
TKO's year-to-date gain significantly outperforms the S&P 500 Index's 9.7% gain. TKO has also outperformed the Communication Services Select Sector SPDR ETF Fund, with a 14.5% rise YTD and a 28.5% surge over the past year.
Financial Disclosure
All information and data in this article are solely for informational purposes. Sristi Jayaswal did not have positions in any of the securities mentioned in this article at the time of publication. Please view the website Disclosure Policy for more information.
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