In a report released today, Jessica Reif Cohen from Bank of America Securities reiterated a Buy rating on Endeavor Group Holdings Inc (EDR – Research Report), with a price target of $32.00.
Jessica Reif Cohen’s Buy rating for Endeavor Group Holdings Inc is based on a comprehensive analysis of the company’s strategic actions and undervalued assets. Cohen notes that despite the announcement of a strategic review coming sooner than anticipated, it is understandable given the significant difference between the public market value of Endeavor’s assets and their potential worth in public or private transactions. This announcement could potentially trigger a formal procedure, with the company likely to take decisive action.
Furthermore, Cohen identifies various underappreciated assets within Endeavor which include significant holdings in companies such as CAA and IMG Arena, both of which have demonstrated high EBITDA multiples. In relation to this, Endeavor itself has been trading at mid-single digit EBITDA multiples, indicating that investors may have underestimated the company’s consolidated value. Cohen’s evaluation suggests that Endeavor’s share price could potentially reach at least $30 in a sale, far surpassing its closing price of $17.72. Lastly, Cohen believes that Endeavor’s diversified exposure to favorable secular trends within the media and entertainment industry, coupled with management’s commitment to creating shareholder value, makes it an attractive investment.
In another report released on October 13, UBS also maintained a Buy rating on the stock with a $31.00 price target.
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Endeavor Group Holdings Inc (EDR) Company Description:
Endeavor Group Holdings is a leading sports and entertainment company that owns and operates premium sports properties, including the UFC. It also produces and distributes sports and entertainment content. Further, it owns and manages exclusive live events and experiences.
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