Goldman Sachs Reiterates Buy Rating on Madison Square Garden Entertainment (MSGE)
Goldman Sachs analyst Stephen Laszczyk reiterated a Buy rating and $45.00 price target on Madison Square Garden Entertainment (NYSE: MSGE)
The analyst comments "Madison Square Garden Entertainment reported FY4Q24 results that beat consensus expectations on Revenue ($186M vs $173M Visible Alpha Consensus Data), Operating Income (-$9M vs -$16M consensus) and Adjusted Operating Income ($13M vs $6M consensus). Revenue grew 26% YoY driven primarily by an increase in the number of concerts held at The Garden vs the prior year quarter. Adjusted Operating Income of $13M beat consensus expectations of $6M driven primarily by better-than-expected Revenue, with MSGE's underlying expense structure coming in only modestly above expectations. No formal FY2025 guidance. While MSGE did not provide any formal guidance ranges in its press release, management did comment that it believes it is well positioned to generate "robust" AOI growth in FY2025. We look for more specific color on the call on the extent of AOI growth the company expects for next year, and what the drivers of this growth could be. Bottom Line. We expect shares of MSGE to trade higher on the back of better than expected quarterly results and a positive FY2025 outlook on AOI that is supportive of the fundamental bull thesis that demand for live entertainment remains robust (even amidst broader macro volatility) and that MSGE is well-positioned to execute on and benefit from these secular tailwinds given its ownership of marquee venues and IP (e.g. MSG, Radio City, Beacon Theater, Christmas Spectacular, etc.)."
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Shares of Madison Square Garden Entertainment closed at $38.66 yesterday.