Needham & Company Starts Madison Square Garden (MSG) at Buy; Value in Knicks & Rangers
Tweet
Share
E-mailGet Alerts MSG Hot Sheet
Price: $237.22 --0%
Rating Summary:
15 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Needham & Company initiates coverage on Madison Square Garden (NASDAQ: MSG) with a Buy. PT $37.00.
Needham analyst says, "In 2011, Forbes listed the Knicks as the #1 most valuable NBA franchise, worth $655mm and the Rangers as the #2 most valuable NHL franchise, worth $507mm. Together, these teams are worth $1.16B, more than half of Madison Square Garden (MSG’s) total enterprise value. By implication, at current trading levels investors can buy MSG for about 4x FY12 EBITDA. The estimated value of MSG’s sports teams are growing at 10-12% annually, which should create a upwardly sloping floor on MSG’s share price. We expect the contract dispute with Time Warner Cable (NYSE: TWC)(Buy-rated) to put downward pressure on MSG this week, and we would use weakness as a buying opportunity."
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 $29.10 yesterday.
Needham analyst says, "In 2011, Forbes listed the Knicks as the #1 most valuable NBA franchise, worth $655mm and the Rangers as the #2 most valuable NHL franchise, worth $507mm. Together, these teams are worth $1.16B, more than half of Madison Square Garden (MSG’s) total enterprise value. By implication, at current trading levels investors can buy MSG for about 4x FY12 EBITDA. The estimated value of MSG’s sports teams are growing at 10-12% annually, which should create a upwardly sloping floor on MSG’s share price. We expect the contract dispute with Time Warner Cable (NYSE: TWC)(Buy-rated) to put downward pressure on MSG this week, and we would use weakness as a buying opportunity."
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 $29.10 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Coherent (COHR) PT Raised to $420 at Needham
- Needham Reiterates Buy Rating on WhiteFiber Inc (WYFI)
- ICICI Securities Resumes Oberoi Realty Ltd (OBER:IN) at Buy (1)
Create E-mail Alert Related Categories
New CoverageRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
