Bernstein Raises TKO Group Stock Price Target to $240

Bernstein SocGen Group raised its price target on TKO Group Holdings (NYSE:TKO) to $240 from $235 while maintaining an Outperform rating, pointing to margin expansion potential ahead of a pivotal 2027 outlook.

"2027 will be a pivotal year for TKO's operating leverage story," wrote analyst Ian Moore in a preview note, noting that the major synergy phase is largely complete and top-line growth is set to flow through a leaner structure.

Margin Expansion and Operating Leverage

According to a Investing.com report, the upward revision in the price target rests on expectations that TKO's operating margins will lift to a modeled 42% from the current 39%. With the corporate integration and cost-synergy phase following the merger of UFC and WWE largely finalized, analysts expect incremental revenue to generate stronger flow-through to earnings.

Analyst Ian Moore characterized TKO as "the most controversial name in our coverage," according to the Bernstein preview. The central debate on Wall Street revolves around whether partnership execution, live-event demand, and media rights escalators can deliver earnings growth that outpaces consensus expectations, or if the company will settle closer to a baseline 6% EBITDA growth rate.

Zuffa Boxing Valuation and Hidden Assets

Beyond core operating margins, Bernstein's valuation model incorporates upside from ancillary assets. The Investing.com analyst coverage notes that the firm estimates the unconsolidated Zuffa Boxing option could represent approximately $10 per share in implied equity value for TKO Group Holdings.

Media rights escalators remain a key pillar for the combat sports and entertainment conglomerate, which houses both the Ultimate Fighting Championship and World Wrestling Entertainment. As existing domestic and international broadcast agreements approach renewal cycles over the next several years, equity analysts continue to weigh the trajectory of sports media rights inflation against broader consumer spending pressures on live ticket sales and pay-per-view purchases.