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Investing.com - Goldman Sachs has reiterated its Buy rating and $50.00 price target on Sphere Entertainment (NYSE:SPHR) following the company’s second-quarter 2025 financial results, which exceeded consensus expectations for both Revenue and Adjusted Operating Income. According to InvestingPro data, the company has demonstrated strong revenue growth of 81.4% over the last twelve months, though profitability remains a challenge.
The investment bank highlighted that Sphere Entertainment has already sold more than 120,000 tickets to its upcoming "The Wizard of Oz" production, with expectations of surpassing 200,000 tickets by the August 28 premiere. This ticket sales pace is tracking ahead of the "Postcard" production’s pre-opening trends in 2023.
Goldman Sachs noted management’s optimism regarding global expansion discussions for both smaller-scale venues with approximately 5,000 seats and larger venues with 15,000-20,000 seats.
Content costs remain a focus for Sphere Entertainment as management evaluates what programming best complements the venue’s upcoming slate and how to increase utilization of the facility.
Goldman Sachs maintained its 12-month price target of $50 for Sphere Entertainment stock, representing a potential 28% total return, as the bank’s outlook for fiscal year 2026 and beyond remains largely unchanged following the second-quarter results.
In other recent news, Sphere Entertainment reported its second-quarter earnings for 2025, revealing a significant earnings per share (EPS) surprise. The company achieved an EPS of $3.39, which sharply contrasted with the forecasted loss of $1.55, marking a surprise of 318.71%. However, the revenue came in slightly below expectations at $282.7 million, compared to the forecast of $286.59 million, resulting in a -1.36% surprise. Despite this revenue miss, the earnings announcement led to a notable increase in Sphere Entertainment’s stock price. Meanwhile, Benchmark reiterated its Sell rating on Sphere Entertainment, maintaining a price target of $35.00. The research firm expressed concerns about the company’s structural challenges in core monetization strategies, despite modest total revenue growth of 3% year-over-year and significant AOI improvement. These developments provide investors with insights into the company’s recent performance and ongoing challenges.
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