Bank of America says the parent company of the New York Knicks will see strong earnings from the NBA playoffs
According to Bank of America, slam dunk seasons from the New York Knicks and Rangers will bode well for parent company Madison Square Garden Entertainment. “We predict strong F3Q results supported by strong in-person demand,” said analyst Peter Henderson. “In our view, results will reflect solid venue leasing, benefiting from strong regular-season performances by the Knicks and Rangers, which could boost attendance Average attendance and spend by cap and support from Radio City’s 10 Christmas Spectaculars in January 2024.” Both the basketball team and the hockey team are on solid winning streaks this season, earning playoff spots. The Knicks’ excellent game stemmed in part from a strong performance from point guard Jalen Brunson. The company’s shares are up about 26% year-to-date. While the playoffs could bode well for shares, Madison Square Garden Entertainment has the potential to reap even bigger rewards if the teams win the championship. Henderson said this was because a partial playoff berth could be factored into the forecast but not a longer championship chance. MSGE YTD mountain Madison Square Garden Entertainment shares from the beginning of the year until now. Given this outlook, the analyst raised his price target to $43 from $41 per share, reflecting an upside of about 8% from Tuesday’s close. He also raised his fiscal third-quarter revenue estimate to $229 million and revised his full-year forecast to $942 million, slightly above the median of the company’s $930 million to $950 million range. “MSGE’s strong market position will continue to position the company to benefit from demand for live music/entertainment events,” he wrote. “We believe MSGE presents a compelling opportunity to own a growth-oriented, pure-play live entertainment company.”
