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EXCLUSIVE: Macquarie Says It's Natural To See This Little Bounce In WWE

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EXCLUSIVE: Macquarie Says It's Natural To See This Little Bounce In WWE

Shares of World Wrestling Entertainment, Inc. (NYSE: WWE) on Tuesday opened more than 4 percent higher. The stock hit a high of $17.87 and briefly fell under the $17 level. Shares traded recently at $17.37, up 2.2 percent.

But why?

Benzinga spoke with Macquarie analyst James Clement. WWE traded at the $21 level in October and Clement said Tuesday morning that "it's natural to see a little bounce here." He also noted the stock has been trading rangebound between its 50-day and 200-day moving average.

Back on November 20, the firm reiterated a Neutral rating and $18 price target on the stock.

The company's annual "Wrestlemania season" will be heating up shortly, so the stock may be one to keep an eye on. Back in 2014, shares hit their all-time high of $31.91 around that time. Wrestlemania season typically begins sometime in January and runs through April.

Related Link: Trailblazers: Vince McMahon Takes His Empire, And An Industry, Over The Top

The company has also been struggling with record-low ratings, particular for its flagship "Monday night Raw" program. The show recently hit its lowest viewership levels in 18 years.

WWE shares hit a 2015-high of $23.63 in early August and have been up and down since. Despite a strong Q3 earnings beat on October 29, the stock has tumbled. Shares saw a slight spike in late-October and mid-November when the sports-entertainment company announced its WWE Network would be offered in India and Germany, respectively.

FBN Securities initiated coverage on the stock in October and said the WWE Network was "clearly a viable business."

"In short, we feel WWE is worth a look – especially by deep value investors given the quarterly dividend, the strength of management, the uniqueness and high barriers to entry tied to the company’s business lines and the strength of the balance sheet," FBN said at the time. "Due to the operating leverage inherent in the OTT model, in the long run its existence should prove better for shareholders and fans alike as subscription based businesses tend to have more visibility going forward than PPV ever did or could."

Latest Ratings for WWE

DateFirmActionFromTo
Sep 2019MaintainsNeutral
Sep 2019Initiates Coverage OnOutperform
Aug 2019Initiates Coverage OnBuy

View More Analyst Ratings for WWE
View the Latest Analyst Ratings

Posted-In: James Clement Macquarie Monday Night RawAnalyst Color Exclusives Intraday Update Analyst Ratings Movers Best of Benzinga

 

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