US stock futures steady with China trade talks, Q3 earnings in focus
Investing.com - Guggenheim raised its price target on Sphere Entertainment (NYSE:SPHR) to $78.00 from $76.00 on Thursday, while maintaining a Buy rating on the stock. Currently trading at $61.67, SPHR has shown remarkable momentum with a 145.6% surge over the past six months. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.
The price target adjustment reflects updated forecasts for the company’s Sphere segment, with changes to both concert revenue projections and expectations for The Wizard of Oz experience.
Guggenheim lowered its concert event-related revenue forecasts for both the third and fourth quarters, citing lower ticket prices and fees for Backstreet Boys performances and shorter run-times resulting in lower per-capita spending compared to other artists such as Kenny Chesney, Eagles, and Dead & Company.
The firm raised its Wizard of Oz forecast for both quarters to reflect "ongoing sell-through strength and pricing," along with approximately 244 additional shows in the fourth quarter, up from about 205 previously expected.
While these adjustments lowered Guggenheim’s third-quarter revenue forecast to $174 million from $179 million, the firm raised its full-year outlook, with 2025 and 2026 AOI (adjusted operating income) forecasts now at $107 million and $182 million, respectively, compared to previous estimates of $99 million and $180 million.
In other recent news, Sphere Entertainment Co. announced the resignation of Gregory Brunner, their Senior Vice President, Controller, and Principal Accounting Officer, effective October 17, 2025. The company clarified that his departure was not due to any disagreements with auditors or management. Meanwhile, Sphere Entertainment reported impressive sales figures for its new "The Wizard of Oz" Sphere Experience, selling over 500,000 tickets and generating more than $65 million in sales since its launch on August 28. This strong performance led Goldman Sachs to raise its price target for Sphere Entertainment to $68, while Guggenheim also increased its target to $76, maintaining a Buy rating in both cases.
Additionally, Sphere Entertainment has been active in repurchasing its own stock, having bought back over a million shares at an average price of $47.43 per share, totaling $50 million. This repurchase activity was funded using cash on hand. Robert Langer, the Executive Vice President, Chief Financial Officer, and Treasurer, will serve as interim principal accounting officer until a permanent replacement for Brunner is found. These developments reflect a period of significant activity and strategic adjustments for Sphere Entertainment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.