In a report released yesterday, Benjamin Swinburne from Morgan Stanley maintained a Hold rating on Madison Square Garden Sports (MSGS – Research Report), with a price target of $215.00.
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Benjamin Swinburne has given his Hold rating due to a combination of factors impacting Madison Square Garden Sports. The recent reduction in local media rights revenues for the Knicks and Rangers, although less severe than previously assumed, still presents a challenge. This adjustment was necessary to prevent potential restructuring of MSG Networks, which could have led to a more significant downside risk for the teams’ local rights revenues.
Despite the reduction being less than anticipated, the shortened term means that the Knicks and Rangers will face another potential reset of local media rights in 2029. While there is optimism about the long-term value growth of professional sports franchises, the immediate visibility of a catalyst for re-rating the stock remains limited. Additionally, the financial results were negatively impacted by the media rights reduction, although there was encouraging growth in other revenue areas such as ticketing and hospitality.
Swinburne covers the Communication Services sector, focusing on stocks such as Spotify, Sphere Entertainment, and AT&T. According to TipRanks, Swinburne has an average return of 13.3% and a 58.99% success rate on recommended stocks.