Madison Square Garden Has Room For 'Robust Growth' Thanks To Concert Lineup, Christmas Spectacular: Analyst

Shares of Madison Square Garden Entertainment Corp MSGE climbed in early trading on Wednesday.

The company is well-positioned to beat fiscal 2025 consensus expectations for revenues, adjusted operating income and free cash flows, according to Goldman Sachs’ Stephen Laszczyk.

The Madison Square Garden Analyst: Laszczyk upgraded the rating for Madison Square Garden from Neutral to Buy, while raising the price target from $41 to $45.

The Madison Square Garden Thesis: The company faces a strong event bookings environment at its arena and theaters, with upside driven by "a combination of strong supply of concert tours (across both legacy and new artists) and fan demand for live entertainment," Laszczyk said in the upgrade note.

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There is room for robust growth in Christmas Spectacular in fiscal 2025, despite the record performance in fiscal 2024, the analyst stated. He estimates Christmas Spectacular revenues of around $157 million for fiscal 2025, "driven by higher show-count, modest increases in sell-through, and increased ticket pricing."

"We model Sponsorship revenues of $286M in FY2025 (up 7.5% YoY vs just 1% growth in FY2024)," Laszczyk wrote.

The recent selloff in the stock offers "an opportunity for investors to gain exposure to a unique, pure-play venues business with an attractive financial model," he added.

MSGE Price Action: Shares of Madison Square Garden Entertainment had risen by 1.10% to $39.40 at the time of publication on Wednesday.

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