In a report released yesterday, Benjamin Swinburne from Morgan Stanley maintained a Hold rating on Madison Square Garden Sports, with a price target of $220.00.
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Benjamin Swinburne’s rating is based on a combination of factors affecting Madison Square Garden Sports. The analyst notes that while there is a general positive outlook for sports and sports rights holders, MSGS faces specific challenges. The renewal rate for season tickets for the Knicks and Rangers has slightly declined compared to the previous year, which could impact revenue stability.
Additionally, there are concerns about the shrinking regional sports network market, which has historically been advantageous for large markets like MSG’s. Swinburne also highlights the increased financial burden due to higher player payrolls and lower than expected media rights revenues. Despite the private market value of the Knicks and Rangers being deeply discounted in MSGS shares, there is currently no evident catalyst to close this valuation gap. As a result, the stock is rated as Hold with a price target of $220, acknowledging the risks involved.
According to TipRanks, Swinburne is a 5-star analyst with an average return of 13.2% and a 59.07% success rate. Swinburne covers the Communication Services sector, focusing on stocks such as Spotify, Charter Communications, and TKO Group Holdings.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $201.00 price target.