Maxim Group Maintains a 'Hold' on Madison Square Garden (MSG); Forecasting Growth
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Price: $59.91 -2.59%
Rating Summary:
9 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
9 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
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Maxim Group maintains a 'Hold' on Madison Square Garden (NASDAQ: MSG).
Analyst, John Tinker, said, "Notwithstanding the solid beat in 4Q12 and a full-year 36% increase in EBITDA, we are maintaining our rating, as we forecast EBITDA growth of only 4.2% in FY13 due to additional Fuse costs and higher sports expenses. In the event of a solid post-season, there could be upside to our forecast. We anticipate a FY14 bounce-back of ~19% y/y growth, as more suites come online at the Garden and the Forum opens. We see little risk in the stock as management acknowledged on the earnings call that liquidity needs should change drastically after the completion of the Transformation next fall, and that stock buybacks or dividends are possible. The Garden may be the only major piece of real estate in Manhattan that is not leveraged. The departure of Knicks’ player Jeremy Lin was well publicized but did not stop season ticket renewals of ~95% for the Knicks (and 90% for the Rangers)."
"We are raising our FY13 Sports segment revenue estimate to $479.3M (up 3.1% y/y), from our prior estimate of $468M."
For an analyst ratings summary and ratings history on Madison Square Garden click here. For more ratings news on Madison Square Garden click here.
Shares of Madison Square Garden closed at $41.41 yesterday, with a 52 week range of $21.12-$44.75.
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Analyst, John Tinker, said, "Notwithstanding the solid beat in 4Q12 and a full-year 36% increase in EBITDA, we are maintaining our rating, as we forecast EBITDA growth of only 4.2% in FY13 due to additional Fuse costs and higher sports expenses. In the event of a solid post-season, there could be upside to our forecast. We anticipate a FY14 bounce-back of ~19% y/y growth, as more suites come online at the Garden and the Forum opens. We see little risk in the stock as management acknowledged on the earnings call that liquidity needs should change drastically after the completion of the Transformation next fall, and that stock buybacks or dividends are possible. The Garden may be the only major piece of real estate in Manhattan that is not leveraged. The departure of Knicks’ player Jeremy Lin was well publicized but did not stop season ticket renewals of ~95% for the Knicks (and 90% for the Rangers)."
"We are raising our FY13 Sports segment revenue estimate to $479.3M (up 3.1% y/y), from our prior estimate of $468M."
For an analyst ratings summary and ratings history on Madison Square Garden click here. For more ratings news on Madison Square Garden click here.
Shares of Madison Square Garden closed at $41.41 yesterday, with a 52 week range of $21.12-$44.75.
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