Wolfe Research warned, investors hoped the recent leadership reshuffle at WWE would be knocked out but instead, they could find themselves battered. Analyst Peter Supino downgraded the stock to peer performance from outperform. Supino also removed his $111/share price target. That target is 30% above Monday’s closing price of $84.95. Stephanie McMahon stepped down earlier this month from her role as co-CEO and president following the unanimous election of her father, Vince, as the company’s executive chairman. She came to the role after taking a sabbatical following her father’s retirement following sexual abuse allegations. “The resignation of Stephanie McMahon and the Board’s official opposition to Vince’s return demonstrate serious tension,” Supino said in a Monday note to clients. Before taking on the role of co-CEO, Stephanie left her position as brand director to focus on her family. Supino said the resignation increased his perception of instability at the company, especially when combined with the return of previous board members who resigned in 2020. He said Stephanie seems fully committed to the role before her father returns, so her resignation could signal Vince’s rebuke or that she wants to free her equity stake from employment constraints. Should the latter happen, Supino said it’s hard to gauge whether that would make investors optimistic or pessimistic about the stock’s future performance. It also raises the question of why Vince needs to come back, he said, wondering if that would give “a kick” to the 2025 TV rights renewal process. His return also comes amid talk of a potential sale. He said there’s also a risk associated with Vince’s return, pointing to a possible drop in ratings due to fans disapproving of him. Supino said Vince’s return could also aid AEW and UFC rivals as companies try to poach talent. WWE did not immediately respond to CNBC’s request for comment. — Michael Bloom of CNBC contributed to this report.