According to Guggenheim, Madison Square Garden Sports Corp (NYSE:) has been named its top pick for 2025 due to the strong growth potential in live entertainment and the possibility of benefiting from Penn Station redevelopment plans.
Despite recent adjustments in guidance related to event timing, the brokerage anticipates nearly double-digit growth in adjusted operating income for fiscal 2025. Although MSGE shares have experienced a 23% decline since the first-quarter results, Guggenheim remains positive about a potential recovery in the latter half of the year and expects robust growth in fiscal 2026 and 2027.
Guggenheim highlighted MSGE’s valuable assets in New York City, such as The Garden, which are well-positioned to capitalize on the resurgence of live events. The brokerage also mentioned the company’s ongoing stock buybacks, including a recent $25 million repurchase.
Additional upside may be realized from potential developments surrounding Penn Station, with reports suggesting discussions between President-elect Trump and New York Governor Kathy Hochul on infrastructure projects. The potential sale of MSGE’s Hulu Theater, estimated to be worth several hundred million dollars, could unlock further value for shareholders.
Guggenheim reiterated its “buy” rating and set a price target of $48, based on a sum-of-the-parts valuation considering MSGE’s cash, debt, and corporate expenses.