Analyst Jason Bazinet of Citi maintained a Buy rating on Endeavor Group Holdings Inc (EDR – Research Report), with a price target of $29.00.
Jason Bazinet has given his Buy rating due to a combination of factors surrounding the acquisition of Endeavor Group Holdings Inc by Silver Lake and other investors. The firm announced that it would be taken private at a significant premium—$27.50 per share, which is 55% above the pre-announcement price. This acquisition not only provides immediate value to shareholders but also pegs the equity value of Endeavor at a robust $13 billion. The market’s reaction to this news was positive, and this sentiment is expected to continue into the future.
Moreover, Bazinet’s outlook is influenced by the strategic consolidation that is taking place, which Silver Lake believes will lead to an enterprise value of $25 billion for the combined entity. The approval by the Special Committee and the anticipation of a closure by the end of the first quarter of 2025 further bolster confidence in the transaction. Despite the longer-than-expected time frame for the deal’s completion, investor inquiries suggest they remain optimistic, as evidenced by the rise in TKO shares following the announcement. The expected share price return of 14.7% adds to the rationale behind the Buy rating.
Bazinet covers the Communication Services sector, focusing on stocks such as Netflix, TKO Group Holdings, and Fox. According to TipRanks, Bazinet has an average return of 7.1% and a 58.30% success rate on recommended stocks.
In another report released on March 25, TD Cowen also assigned a Buy rating to the stock with a $30.00 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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