Citi Lifts Madison Square Garden Sports Price Target to $337 and Q2 Revenue Tops $403M
Citi raised Madison Square Garden Sports’ price target to $337 from $290, maintaining a Buy rating and highlighting potential for a minority stake sale to narrow valuation gaps. Second-quarter revenue reached $403.42 million, topping the $394.57 million consensus on strong in-game and corporate demand.
1. Analyst Price Target Increases
Citi analyst Jason Bazinet raised his price target on Madison Square Garden Sports to $337 from $290, maintaining a Buy rating. Morgan Stanley lifted its target to $295 from $220 with an Equal Weight rating, and JPMorgan boosted its target to $305 from $240, citing attractive risk/reward.
2. Strong Second-Quarter Results
Madison Square Garden Sports reported Q2 revenue of $403.42 million, exceeding the $394.57 million estimate, as in-game and corporate spending surged. Executive Chairman James Dolan attributed the beat to positive momentum across ticketing, concessions and sponsorships, underlining robust consumer demand.
3. Potential Minority Stake Sale
Management remains open to selling a minority stake to narrow valuation discrepancies with private market benchmarks, potentially unlocking shareholder value and aligning public valuation with peers.
4. Business Operations
Madison Square Garden Sports operates professional teams including the NBA’s New York Knicks and NHL’s New York Rangers, along with venue management and in-game entertainment services, positioning it for sustained revenue growth.