Conor McGregor Returns To UFC & Lawsuits Settled: Why TKO Stock Is Punching Higher

TKO Group Holdings, Inc. TKO shares traded higher Wednesday after the company settled class-action lawsuits with former UFC athletes.

The Details:

According to an SEC filing, TKO reached an agreement on March 13 to settle all claims asserted in both class action lawsuits for an aggregate amount of $335 million payable in installments over an agreed-upon period of time. 

Also, two-time UFC champion and mega-star Conor McGregor announced on Tuesday that he will be coming back to the UFC this summer, in a fight against Michael Chandler. The exact date and event are not yet known.

Last week, B of A Securities analyst Brent Navon initiated coverage on TKO Group with a Buy rating and announced a price target of $100. Citigroup analyst Jason Bazinet maintained a Buy rating and raised the price target from $125 to $130 on Monday. 

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TKO Stock Prediction 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of TKO Group Holdings have an average 1-year price target of $102.4, representing an expected upside of 17.53%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on TKO Group Holdings, while 2 analysts have bullish ratings. The street high price target from Citigroup is $130, while the street low from TD Cowen is $92.

TKO Price Action: According to Benzinga Pro, TKO Group Holdings shares were up 7.55% at $87.14 before the close.

Image: Andrius Petrucenia from Wikimedia Commons