Although WWE has faced obstacles in its move into the online video space, financial analysts on Wall Street appear to be changing their view on the company now that it has racked up 1.5 million paying subscribers online.
"A loss of investor faith in management and skepticism of the WWE Network have been a material overhang on WWE stock," wrote BTIG analyst Brandon Ross in a new post. "We believe that confidence in both will be restored shortly and the stock price will follow." BTIG is initiating coverage on WWE with a "buy" rating and a $25 price target.
That's a notable position considering WWE's stock hit a low point of around $10 per share in January when investors were concerned its new streaming service would cut into its cable business.
But, according to a detailed Deadline article, BTIG isn't alone in its newfound interest in the wrestling entertainment company. According to the publication, Bernstein Research's Todd Juenger called WWE "the original pioneer" in video streaming. He noted WWE has "more experience…than any other company we know of" in the movement from cable to online video.
"We believe that WWE is a significantly undervalued company, given its collection of assets and operating business," BTIG's Ross concluded. "We also believe that Street financial projections are too low."