World-renowned investment bank and financial services company Morgan Stanley raised the price target of WWE stocks to $100.
“By securing a 3.6x multiple in its new five-year agreements with NBC/FOX relative to its prior five-year broadcast agreement with NBC, WWE gains a massive increase in earnings power, with visibility into the revenue associated with these new rights extremely high,” wrote Benjamin Swinburne, the company’s Managing Director and Head of Media Research.
Swinburne said that when the TV rights are up for renewal in five years time, WWE will bring in much more money than they did now and even the renewal in the U.K. and India next year will lead to higher television rights.
“While we await the outcomes of its smaller UK and India rights renewals, to some extent the match is over as WWE is likely the fastest growing earnings story in our coverage group,” Swinburne wrote.
With stocks trading in the mid-70s, WWE has a market cap of $5.75 billion and it is trading at 150% more than the beginning of the year.