CNBC.com is featuring an article about Morgan Stanley raising its price target for WWE shares to $100 from $58, representing a 34% upside for the company.
Morgan Stanley is citing the company’s recent television renewal with NBC Universal (Monday Night RAW) and the new deal with Fox Sports (Smackdown Live), describing WWE as a strong example of “rapid appreciation” in content value in the public markets.
“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.”
WWE stock closed out this week at another high of $76.90. The stock had already soared to a new high in just the last two weeks after setting records earlier this year.