Hold Rating for Madison Square Garden Entertainment Corp Amid Mixed Near-Term Signals and Promising Long-Term Prospects

In a report released today, Cameron Mansson-Perrone from Morgan Stanley maintained a Hold rating on Madison Square Garden Entertainment Corp. (MSGE – Research Report), with a price target of $41.00.

Cameron Mansson-Perrone’s rating is based on a combination of factors that reflect both opportunities and challenges for Madison Square Garden Entertainment Corp. While the company is well positioned to benefit from a strong demand for live entertainment, there are some near-term obstacles that may limit potential growth in the immediate future. Specifically, concert bookings are experiencing some softness which is expected to persist through FY25, partly due to past events like the Billy Joel residency. However, these issues are anticipated to be temporary.
Despite these challenges, other areas of the business, such as the Christmas Spectacular, have exceeded expectations, indicating a robust consumer interest. Additionally, early indications for FY26 concert bookings are promising, with a positive trend in sight. The company has also engaged in stock repurchases and maintains the potential for further capital returns, contributing to a balanced outlook. These mixed signals lead to the conclusion that a Hold rating is appropriate at this time, as the long-term prospects remain positive but immediate gains may be limited.