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To own Madison Square Garden Sports, you need to believe in the enduring pull of the Knicks and Rangers and the pricing power of live, premium New York sports. The latest quarter’s improved profitability and progress toward reducing losses help support that thesis, but do not materially change the near term focus on filling the gap from lower local media rights and controlling rising player costs, which remain the most important catalyst and risk right now.
The extension of the Infosys partnership, including the rebranding of the 5,600 seat Infosys Theater at Madison Square Garden and expanded digital activations, is most relevant here, as it highlights how MSG Sports is leaning into higher value sponsorship and technology driven fan engagement to broaden revenue beyond traditional media rights. If these kinds of partnerships scale, they could help offset media related headwinds and support more resilient sponsorship and in arena income.
Yet beneath the solid quarter, investors should be aware that reliance on just two franchises still leaves MSG Sports exposed if...
Read the full narrative on Madison Square Garden Sports (it's free!)
Madison Square Garden Sports' narrative projects $1.1 billion revenue and $102.9 million earnings by 2028. This requires 1.6% yearly revenue growth and a $125.4 million earnings increase from -$22.5 million today.
Uncover how Madison Square Garden Sports' forecasts yield a $311.50 fair value, a 7% upside to its current price.
Before this news, the most optimistic analysts were assuming revenue around US$1.1 billion and earnings near US$105 million by 2028, which is far more bullish than consensus. In light of the Infosys expansion and recent earnings, you may find that your own view of sponsorship potential and media risk sits somewhere between that upbeat scenario and the more cautious baseline, so it is worth comparing several viewpoints before deciding what feels reasonable to you.
Explore 3 other fair value estimates on Madison Square Garden Sports - why the stock might be worth less than half the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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