Investor Alert

The Ratings Game Archives | Email alerts

May 25, 2021, 6:40 a.m. EDT

UFC and William Morris are strong assets, but Endeavor stock’s 26% gain since its IPO leaves analysts wary

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Endeavor Group Holdings Inc. (EDR)
  • X
    Renaissance IPO ETF (IPO)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

Ciara Linnane

1 2

“We see attractive but lower growth and lower [return on invested capital] live events and marketing agencies for the remaining businesses at Endeavor,” said the analyst.

Morgan Stanley started coverage of Endeavor’s stock with an equal-weight rating and $30 price target.

UBS also launched coverage with a neutral rating and set a share-price target of $33.

See also: William Morris and UFC parent Endeavor’s stock closes up 5% in NYSE trading debut

Jefferies took a more bullish stance, initiating coverage with a buy rating and a $40 price target with an upside scenario of $50.

Endeavor is a media powerhouse, “   with the wide-reaching spokes of its content flywheel (e.g sports ops & advisory, events & experiences management, media production & distribution, client representation, brand licensing, experiential marketing) unlocking monetization opportunities for clients & owned assets (e.g. UFC),” said analysts Randal J. Konik and Anna Glaessgen, who also highlighted the scarcity value that makes UFC attractive.

See now:  DraftKings stock surges after deal to be UFC’s official sportsbook, daily fantasy partner

UFC has more followers than the NFL, they wrote in a note to clients.

“Plus, this asset demonstrates the full utilization of the platform; Endeavor benefits from representing fighters, marketing and licensing deals, event management, and [direct-to-consumer] distribution such as UFC Fight Pass,” they wrote.

Endeavor’s IPO documents showed its net loss widened to $625 million in 2020 from $530.7 million in 2019, while revenue shrank to $3.479 billion from $4.571.0 billion.

Endeavor shares were down 3.7% on Monday but are up about 5% this month, while the Renaissance IPO ETF /zigman2/quotes/207665280/composite IPO +4.82% has fallen 4.9% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +3.06% has gained 0.5%.

US : U.S.: NYSE Arca
$ 33.26
+1.53 +4.82%
Volume: 319,509
June 24, 2022 4:00p
+116.01 +3.06%
Volume: 3.46B
June 24, 2022 5:05p

1 2
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.