WWE posted revenue that topped consensus on the top and bottom lines in Q4 2017, and are guiding to another year of record Adjusted OIBDA.
The addition of Ronda Rousey may yield WWE higher TV rights fees from advertisers in its domestic TV rights negotiations, especially as WWE's ratings hold up better than prime time cable.
WWE Network programming spend is decreasing as management alluded to in Q3, boosting margins from a stable subscriber base.
Vince McMahon will not be altering his role from the WWE, as the XFL will likely not have any material impact on WWE.
I reiterate my Buy rating with a $38 price target, implying a 10.8% upside.