-- (Updated to include Seaport's commentary)
Seaport upgraded Madison Square Garden Sports (MSGS) to buy from neutral ahead of the potential spin later this summer that separates the Knicks and Rangers into their own standalone companies.
While noting that a unique, punitive tax code impact that starts in 2027 could open up the aggregate of the two companies into more tax expense, the brokerage mentioned that the separation could, at the same time, facilitate a minority shareholder investment, which could help offset years of added tax burden and provide a clear valuation benchmark, acting as a significant enough catalyst for the stock.
Madison Square Garden Sports has an average rating of overweight and mean price target of $367.50, according to analysts polled by FactSet.
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Price: $329.70, Change: $+7.50, Percent Change: +2.33%