Madison Square Garden Sports stock price target lowered to $257 by Wolfe Research

Published 13/08/2025, 11:48
Madison Square Garden Sports stock price target lowered to $257 by Wolfe Research

Investing.com - Wolfe Research has reduced its price target on Madison Square Garden Sports (NYSE:MSGS) to $257.00 from $270.00 while maintaining an Outperform rating on the stock. The company, currently valued at $4.69 billion, has generated revenue of $1.06 billion in the last twelve months, according to InvestingPro data.

The firm views MSGS as a relatively defensive asset trading at a 60% discount to its private market value (PMV), providing intrinsic valuation support for the stock. This defensive nature is reflected in the company’s low volatility, with a beta of 0.76, though InvestingPro analysis indicates the stock is currently trading at high valuation multiples across several metrics.

Wolfe Research points to high private market valuations for NBA and NHL franchises as reinforcement for its thesis, citing recent transactions involving the Boston Celtics, Los Angeles Lakers, Phoenix Suns, Charlotte Hornets, and Maple Leaf Sports and Entertainment (which owns the Toronto Raptors, Toronto Maple Leafs, and Toronto FC).

The firm’s sum-of-the-parts analysis applies a 50% discount to its estimated $12.8 billion private market value for the New York Knicks and New York Rangers franchises owned by Madison Square Garden Sports.

This analysis supports a 6.3x target enterprise value to sales multiple, which Wolfe Research considers appropriate for trophy assets that have recently commanded more than 10x sales in private transactions.

In other recent news, Madison Square Garden Sports Corp. (MSGS) reported its fourth-quarter earnings for 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of -$0.07, which was better than the anticipated -$0.14. Additionally, MSGS reported revenue of $204 million, significantly exceeding the projected $164.25 million. These results highlight the company’s strong performance in the quarter. Despite the positive earnings and revenue figures, the stock experienced a mixed reaction in the market. The earnings report underscores MSGS’s capability to outperform market projections. Analysts had previously forecasted lower figures, making the actual results noteworthy. These developments reflect recent trends and updates concerning the company’s financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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