TKO Group price target lowered to $140 from $170 at Pivotal Research

Pivotal Research lowered the firm’s price target on TKO Group (TKO) to $140 from $170 and keeps a Buy rating on the shares. Post the announcement of a $3.2B all equity deal for the mostly sports and event related assets of parent Endeavor, the firm updated its financial model for the deal and initiated a 10% “conglomerate” discount given the greater complexity of the story. While the “arguably expensive deal” makes some strategic sense medium to long term with the core business, it also makes the story more complicated to forecast and likely reduces the chances of an ultimate sale of TKO, the analyst tells investors in a research note.