Madison Square Garden Entertainment stock price target lowered to $42 by Goldman Sachs

Published 14/08/2025, 11:36
Madison Square Garden Entertainment stock price target lowered to $42 by Goldman Sachs

Investing.com - Goldman Sachs lowered its price target on Madison Square Garden Entertainment (NYSE:MSGE) to $42.00 from $43.00 on Thursday, while maintaining a Buy rating on the stock. The company, currently valued at $1.27 billion, has seen its stock trade between $28.29 and $44.14 over the past 52 weeks. According to InvestingPro data, the stock is currently fairly valued.

The adjustment follows MSGE’s fiscal fourth-quarter 2025 results, which came in slightly below consensus expectations for both revenue and adjusted operating income (AOI). With revenue of $942.7 million and an EBITDA of $192.1 million in the last twelve months, Goldman Sachs noted that many of the issues affecting the quarter were timing-related or one-off in nature.

Despite the modest reduction in price target, the firm expressed confidence in MSGE’s medium-to-long-term fundamentals, citing robust supply and demand for live entertainment and the company’s positioning to benefit from these secular trends.

Goldman Sachs maintained its revenue outlook for fiscal year 2026 but reduced its AOI forecast by approximately 3% and free cash flow projections by about 5%, reflecting a slightly heavier expense and capital expenditure structure than previously anticipated.

The firm still projects approximately 7% AOI growth for MSGE in fiscal year 2026, with further acceleration expected in fiscal year 2027, and sees a potential 20% total return to its new $42 price target.

In other recent news, Madison Square Garden Entertainment Corp. reported its fourth-quarter earnings for 2025, showing a decline in both earnings per share (EPS) and revenue compared to analyst expectations. The company posted an EPS of -$0.57, which was significantly below the forecast of -$0.39, resulting in a 46.15% negative surprise. Revenue also fell short, coming in at $154.1 million against the anticipated $175.06 million, marking an 11.97% shortfall. These results have drawn investor attention, as the figures did not meet expectations. Additionally, BofA Securities reiterated its Buy rating on Madison Square Garden Entertainment, maintaining a $48.00 price target. The firm highlighted MSGE’s solid market position, which they believe will continue to benefit from strong supply and demand trends for live music and entertainment events. These developments reflect the company’s current challenges and the ongoing confidence of some analysts in its market position.

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