(Bloomberg) -- TKO Group Holdings Inc.’s winning record of buy ratings from every analyst on Wall Street has been broken. 

TD Cowen, unimpressed with the sports-entertainment company’s performance and concerned about its legal troubles, kicked off coverage on the owner of World Wrestling Entertainment and the Ultimate Fighting Championship with a market perform recommendation — the first non-buy-equivalent rating given to the company since it started trading in September. 

Analysts Stephen Glagola and George Kuhle expressed caution on TKO’s ability to continue generating profits and returns for shareholders amid ongoing litigation.

With a pending lawsuit alleging antitrust violations, “we think the market is underappreciating the risks,” they wrote, assigning a $92 price target to the stock.

In August, around 1,200 former UFC fighters won class action status in an antitrust lawsuit against the Las Vegas-based mixed martial arts powerhouse, accusing it of confining athletes to a cycle of successive contracts and paying them less than they would have received in a competitive market. An April 8 trial is a “risk catalyst that warrants investor focus,” Glagola and Kuhle said.

The analysts say that any significant monetary damages from the suit would act as an “impediment” to TKO announcing share repurchases or dividends during the company’s fourth-quarter earnings call. “TKO has indicated that it does not expect the upcoming case to be a significant impediment to repurchasing shares or implementing a dividend,” Glagola and Kuhle wrote in their now.

“As we’ve said previously, we believe the plaintiffs’ claims have no merit, and we look forward to making our arguments in court,” William A. Isaacson, lead counsel for UFC, and partner with Paul, Weiss, said in a statement.

Offsetting the new hold rating, TKO has nine buy recommendations and zero sells from analysts tracked by Bloomberg. The average 12-month price target of $110 implies more than 40% upside. Shares slumped 5.5% to $77.12 in New York on Friday, dragging the stock back into the red for the year.

Glagola and Kuhle said they are also below sell-side consensus when it comes to key media rights renewals, explaining that the TKO is “already over-indexed to US media rights.” They see the audience for WWE’s scripted entertainment as a “niche market segment (distinct from sports) with limited potential ability to drive incremental affiliate fee growth.”

Shares in TKO Group plummeted in September after a new deal to broadcast its SmackDown show on USA Network disappointed some investors. Currently, the company is looking to sign a new deal for its Raw program. Glagola and Kuhle see Warner Bros. Discovery Inc., Amazon.com Inc., Walt Disney Co. and Netflix Inc. as realistic potential suitors.

--With assistance from Katrina Compoli.

(Updates to add quote from corrected TD Cowen note. A previous version of this story corrected the sixth paragraph to reflect a correction made in the note by TD Cowen and the spelling of Walt Disney Co. in the final paragraph.)

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