UFC Parent Company Raising Its Stocks
The UFC is expected to grow significantly.
Morgan Stanley, a finance firm, upgraded Endeavor, UFC’s parent company, and set a new price target of $40 per share. As of Thursday afternoon, Endeavor Group Holdings (EDR) was $31.19 per share.
The financial firm’s move stems from Endeavor’s ownership of UFC, which they expect to continuously grow along with its talent agency WME.
Morgan Stanley noted that, thanks to the UFC’s growth of its media rights revenue and sponsorship revenue, it will continue to trend upwards.
“As a relatively nascent sport relative to other sports properties, we see a long runway for increased engagement globally which should translate into higher scarcity value to broadcasters and streaming platforms,” Morgan Stanley’s Benjamin Swinburne said.
Endeavor, led by CEO Ari Emanuel, went public in an IPO in April at $24 a share. The company’s target was to emphasize its owned sports – like UFC – and live events business.
Last month, Endeavor announced a reported profitable third quarter in 2021 thanks to the UFC.
But not everyone was impressed by the news, including former UFC fighter Cris Cyborg.
“U Fight Cheap. More and more big names going to leave and be replaced with contender series contracts,” Cyborg tweeted.