Market Overview

Analyst: WWE's Stock Is Worth A Buy Ahead Of WrestleMania Weekend

Analyst: WWE's Stock Is Worth A Buy Ahead Of WrestleMania Weekend
Related WWE
72 Biggest Movers From Yesterday
54 Stocks Moving In Thursday's Mid-Day Session

World Wrestling Entertainment, Inc. (NYSE: WWE) will host its iconic WrestleMania event this weekend, which prompted KeyBanc to reiterate a bullish stance on the stock.

The Analyst

KeyBanc Capital Markets' Evan Wingren maintains an Overweight rating on World Wrestling Entertainment's stock with an unchanged $43 price target.

The Thesis

WrestleMania 34 takes place Sunday and is the WWE's biggest subscriber acquisition event of the year, Wingren said in a research note. An estimated 2.05 million people will tune in to the event, of which 1.75 million people are paid WWE Network subscribers and 300,000 people on a trial subscription although the majority of people who signed up for a trial won't convert to a paid subscription.

Linear viewership for WWE's weekly "Monday Night Raw" program is up 3 percent from the first quarter a year ago, which Wingren said marks a reversal from declining metrics in recent years. Coupled with in-line search trends for "WrestleMania" compared to prior matches, Sunday's event could be "slightly above" what it has been in prior years.

Favorable trends for WWE justifies a 13 times multiple on 2020 adjusted OIBDA of $263 million, which yields a price target of $43, the analyst said. This multiple is within the stock's historical range and slightly above the three-year average EV/EBITDA multiple NTM.

Price Action

Shares of World Wrestling Entertainment were trading higher by 1.7 percent at $37.70 early Friday morning.

Related Links:

Fox Sports Execs Attend 'SmackDown Live'; Here's Why That's Good News For WWE

WWE Is Still A Heavyweight; KeyBanc Upgrades Stock Ahead Of TV Renewal Cycle

Image credit: Miguel Discart, Flickr

Latest Ratings for WWE

Dec 2018Loop CapitalInitiates Coverage OnHold
Nov 2018JP MorganUpgradesNeutralOverweight
Oct 2018Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for WWE
View the Latest Analyst Ratings

Posted-In: Evan Wingren KeyBanc Capital Markets Monday Night Raw WrestleManiaAnalyst Color Reiteration Top Stories Analyst Ratings Best of Benzinga


Related Articles (WWE)

View Comments and Join the Discussion!

Latest Ratings

INTCMorgan StanleyUpgrades0.0
SOEvercore ISI GroupUpgrades0.0
ADBEDZ BankDowngrades0.0
AVGOCowen & Co.Downgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

18 Stocks Moving In Friday's Pre-Market Session

Tech Strategist: Twitter Is The Main Beneficiary Of Facebook's Privacy Scandal