Analyst David Karnovsky from J.P. Morgan maintained a Hold rating on Endeavor Group Holdings Inc (EDR – Research Report) and decreased the price target to $27.50 from $30.00.
David Karnovsky has given his Hold rating due to a combination of factors surrounding the acquisition of Endeavor Group Holdings Inc by Silver Lake. The agreed acquisition price represents a 55% premium over the unaffected share price prior to the announcement of the company’s strategic review, and a 39% premium over the 30-day volume-weighted average price. Karnovsky notes that the transaction valuation is approximately 13 times the projected 2024 EBITDA on a consolidated basis, or around 8.5 times when excluding Endeavor’s 51% stake in TKO, adjusted to average out the impact of the Olympics.
The transaction is projected to close by the end of Q1 2025, and all necessary stockholder approval has already been secured through written consent. Given the terms and the likelihood of the deal’s completion, Karnovsky aligns the price target with the offer price, reducing it from the previous $30 to $27.50, reflecting the limited upside potential. He does not anticipate another buyer presenting a higher offer, which further justifies the Neutral rating.
Karnovsky covers the Communication Services sector, focusing on stocks such as TKO Group Holdings, Cinemark Holdings, and News Corp. According to TipRanks, Karnovsky has an average return of 11.6% and a 72.27% success rate on recommended stocks.
In another report released yesterday, Evercore ISI also downgraded the stock to a Hold with a $27.50 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on EDR:
- Endeavor Group downgraded to Hold from Buy at Jefferies
- UPS upgraded, PepsiCo downgraded: Wall Street’s top analyst calls
- Endeavor Group downgraded to In Line from Outperform at Evercore ISI
- Seaport downgrades Endeavor Group, does not see higher offer
- Endeavor Group’s Strategic Merger and Corporate Restructuring
