Investing.com -- Guggenheim named Madison Square Garden Sports Corp (NYSE:MSGS) its "best idea" for 2025 given strong secular growth in live entertainment and potential upside from Penn Station redevelopment plans.
The brokerage expects near double-digit adjusted operating income growth for fiscal 2025 despite recent guidance revisions linked to event timing. Shares of MSGE have fallen 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.
Guggenheim said MSGE’s iconic New York City assets, including The Garden, are well-positioned to benefit from a rebound in live events. The brokerage also pointed to ongoing stock repurchases, including a recent $25 million buyback.
Further upside could come from potential developments around Penn Station, with reports indicating 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 shareholder value.
Guggenheim reiterated its "buy" rating and a $48 price target, based on a sum-of-the-parts valuation that reflects MSGE’s cash, debt, and corporate costs.