Investing.com – Guggenheim named Madison Square Garden Sports (NYSE:) a “Best Idea” for 2025 given strong growth in live entertainment and potential upside from Penn Station redevelopment plans.
The brokerage expects near double-digit growth in adjusted operating income for fiscal 2025 despite recent guidance revisions tied to the timing of the event. MSGE shares are down about 23% since its fiscal first-quarter results, but Guggenheim remains optimistic about a recovery in the second half of the year and stronger growth in fiscal 2026 and 2027.
MSGE's iconic assets in New York City, including The Garden, are well positioned to benefit from the live events rebound, Guggenheim said. The brokerage also noted ongoing stock buybacks, including a recent $25 million buyback.
Further upside could come from potential developments around Penn Station, with reports indicating that President-elect Trump has discussed infrastructure projects with New York Governor Kathy Hochul. The sale of MSGE's Hulu Theater, valued at several hundred million dollars, could unlock additional value for shareholders.
Guggenheim reiterated its “buy” rating and $48 price target, based on a sum-of-the-parts rating that reflects MSGE's cash, debt and corporate costs.
