Market Overview

Macquarie Upgrades WWE As WrestleMania Season Kicks Off, Near-Term Downside Catalysts Fade Away


In a report published Monday, Macquarie upgraded World Wrestling Entertainment, Inc. (NYSE: WWE) from Underperform to Neutral, as WrestleMania season kicks off and near-term downside catalysts fade away. Despite the promotion, the firm maintained its estimates and $11 price target.

Macquarie analyst James Clement explained the rating: “We think it's clear WWE’s long-term commitment to the struggling WWE Network is priced into the stock. We point to the roughly $105 million annual revenue WWE will derive from major TV rights contracts from 2014 to 2018 as the prime reason why core, non-network fundamentals are likely to improve.”

One of the main reasons behind the upgrade was the ruling from the company pulling the plug on the Network in relatively short order. In a recent investor presentation, management “stated firmly and clearly that any major change in course on the network was at least 24 months away.”

As the news transcended, the stock plummeted almost 15 percent in January. Macquarie now sees no other material downside catalysts, and thus changed its rating.

Finally, the report highlighted that “the months between the Royal Rumble and WrestleMania are typically the most exciting of the year and to the extent the company catches a wave of popularity, it often occurs in the March quarter -another reason to re-think selling the stock.”

Shares of WWE opened around $10.56.

Latest Ratings for WWE

Aug 2019Initiates Coverage OnBuy
Jul 2019MaintainsOverweight
Jul 2019UpgradesHoldBuy

View More Analyst Ratings for WWE
View the Latest Analyst Ratings

Posted-In: James Clement Macquarie Royal Rumble WrestleManiaAnalyst Color Upgrades Price Target Analyst Ratings


Related Articles (WWE)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Morning Market Gainers

Wedbush Sees Amazon Reporting Share Gains In Q4 That Were Likely Offset By Record Spending