World Wrestling Entertainment (NYSE: WWE) shares surged at the start of the month following news that Vince McMahon was returning to the company to help it “undertake a review of its strategic alternatives with the goal being to maximize value for all WWE shareholders.”
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The stock is up over 29% in 2023 already and has gained over 73% in the last 12 months.
Last week it was reported that Saudi Arabia's investment fund had struck a deal to buy the organisation, but those rumours were promptly dismissed.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
On Tuesday, Wells Fargo analyst Steven Cahall upgraded WWE shares to Equal Weight from Underweight, raising the firm's price target on the stock to $100 from $52 per share.
The Fly quoted the analyst as telling investors in a note that he is capitulating and that his previous negative thesis regarding WWE's TV rights renewals is moot as a result of the company's strategic process.
He added that a strategic process “has a reasonable probability of success,” and that he believes a financial buyer could justify a mid-teens enterprise value to EBITDA multiple and derives at an $8 billion valuation or $100 per share.
However, he argues that a sale price significantly above $100 per share is harder to justify.
Overall, out of eight analysts, five have a Buy rating on WWE, with three assigning the stock a Hold rating, according to TipRanks. The average price target is $98.25 per share.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.