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© Reuters.WWE cuts stock on Wolfe as Vince’s return shows pressure
by Senad Karaahmetovic
Wolfe Research analysts downgraded world wrestling entertainment (NYSE: ) adjusted to Peer Perform from Outperform, pushing shares lower in premarket trading Tuesday.
WWE shares are up about 25 percent since late December when it was first reported that company founder and majority shareholder Vince McMahon would return to lead the company. While the stock reacted positively, analysts see McMahon’s return and Stephanie McMahon’s resignation as co-CEO heightening risks.
“Adding to our view of instability is the return to the board of former co-presidents George Barrios and Michelle Wilson, who resigned in 1/20. Stephanie McMah The resignation of Stephanie McMahon and the board’s formal resistance to Vince’s return point to a lot of pressure,” the analysts wrote in a downgrade note.
They see Stephanie’s resignation as either “a strong rebuke of her father’s decision or a desire to free her WWE equity from the ‘double trigger’ vesting commitment of her employment agreement.”
“1) bearish and 2) bullish,” the analyst added.
Along with the downgrade, they also removed their $111 price target on WWE stock.
WWE stock was down nearly 0.5 percent in premarket Tuesday.
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