© Reuters.
Goldman Sachs initiated Entertainment at Madison Square Garden Corp (NYSE:) with an equal weight rating, with Morgan Stanley giving the stock a neutral rating in a note to clients on Friday.
Goldman Sachs analysts have assigned the stock a price target of $40, indicating to investors that growth opportunities in live entertainment assets are priced in.
“While MSG Entertainment’s recent spin has created a unique opportunity for investors to gain pure exposure to a live entertainment venue business (and the age-old tailwinds and strong financial model that come with it), we are looking at a valuation at current levels where appropriate given the company’s expected growth profile and capital allocation opportunities relative to comparable companies in the market today,” the analysts said.
Morgan Stanley analysts struck a similar tone, assigning a $40 price target to the stock and explaining that while bullish on the growth potential of live entertainment, MSGE shares are already reflecting that point. seen.
“We note that the retained 33% stake in MSGE has a pre-tax value of approximately $18/SPHR share. Our base case assumes that SPHR will soon withdraw MSGE’s $65 million deferred term loan and likely sell part of its MSGE Actions to raise more capital to make the Sphere operational,” they added.
