Jefferies: TKO Group shares could spike over 39%

Investment bank Jefferies "thinks investors should buy up TKO Group," calling the company a "knockout combo of two major entertainment giants." Analyst Randal Konik initiated TKO with a "buy rating and assigned a 12-month price target of $120," which "suggests shares could jump more than 39% from Friday’s close." Konik called UFC a "best-in-class entertainment play" that is "well-positioned to generate strong growth and margins, especially given its media rights expansion opportunity, sponsorship growth and compelling live events." Now coupled with WWE, Konik thinks TKO's management "can drive meaningful top-line growth, attractive margin expansion and significant free cash flow generation of more than" $3.6B for the company between 2023 and 2026 (CNBC.com, 2/12). TKO Group stock was trading at $87.10 at the closing bell (SBJ).