Research Alert: CFRA Keeps Hold Opinion On Shares Of World Wrestling Entertainment, Inc.
12:20 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $16 to $55 on a '21 EV/EBITDA of 15.0x, ample vs. peers. We cut '21 EPS estimate by $0.18 to $1.67 and set '22's at $2.18. With the entire content of its WWE Network (streaming) set to begin streaming exclusively on NBCU's Peacock pursuant to a strategic licensing pact starting on March 18, we see WWE increasingly focusing on expanded international distribution, with India and LatAm (as well as China, Korea, and Australia) as the near-term focal points. Meanwhile, WWE expects the ongoing Covid-19 restrictions to further weigh on live events at least through H1 '21, but affirmed its target '21 adjusted EBITDA of $270M-$305M (implying -6% to +7% Y/Y largely due to the Covid-19 disruption). Q4 adjusted EPS of $0.24 vs. $0.78 was $0.06 below consensus. Revenues declined 26% mainly due to the disruption of live events, as well as ticket and merchandise sales. Adjusted EBITDA margin shed 1,180 basis points. WWE Network had average paid subscribers of about 1.5M in Q4, up 6%.