Guggenheim raises Sphere Entertainment price target on Wizard of Oz success

Published 10/09/2025, 12:02
Guggenheim raises Sphere Entertainment price target on Wizard of Oz success

Investing.com - Guggenheim raised its price target on Sphere Entertainment (NYSE:SPHR) to $76.00 from $75.00 on Wednesday, while maintaining a Buy rating on the stock. The new target represents significant upside from the current price of $51.83, with the stock already trading near its 52-week high of $55.19.

The price target increase follows stronger-than-expected initial performance of Sphere’s "The Wizard of Oz" experience, which has seen numerous sold-out shows and strong overall ticket sales since its August 28 opening. This success has contributed to the company’s impressive 58% return over the past six months, reflecting strong investor confidence in the $1.87 billion entertainment company.

Guggenheim now forecasts that Wizard of Oz shows are likely averaging over $600,000 per show, exceeding the approximately $500,000 per show that "Postcard" generated at launch and significantly outperforming recent trends of around $320,000 per show.

The firm has updated its outlook to include 216 Experience shows for the year, including 78 Wizard of Oz performances, up from its previous estimate of 195 shows total.

Guggenheim revised its third-quarter 2025 revenue and adjusted operating income forecasts to $179 million and $20 million respectively, up from previous estimates of $174 million and $18 million, while its full-year AOI forecast increased to $99 million from $95 million. The company has demonstrated strong revenue growth of 43.91% over the last twelve months, though analysts note it may not be profitable this year.

In other recent news, Sphere Entertainment Co. reported a notable earnings per share (EPS) surprise in its second-quarter 2025 results, achieving an EPS of $3.39 against a forecasted loss of $1.55, marking a surprise of 318.71%. However, the company experienced a slight revenue miss, with $282.7 million reported against an expected $286.59 million. Goldman Sachs maintained its Buy rating on Sphere Entertainment, citing strong financial performance and impressive ticket sales for its upcoming "The Wizard of Oz" production. In contrast, Benchmark reiterated a Sell rating, expressing concerns about the company’s core monetization strategies despite modest revenue growth. Additionally, Sphere Entertainment announced the departure of Andrea Greenberg, CEO of its subsidiary MSG Networks, following the expiration of her employment agreement. The company also repurchased 629,028 shares of its Class A common stock for approximately $27.5 million. Sphere Entertainment continues to have $322.5 million remaining under its share repurchase authorization.

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