Guggenheim has made a positive adjustment to Madison Square (NYSE:SQ) Garden Entertainment 's (NYSE: NYSE:MSGE) financial outlook, raising the stock's price target from $42.00 to $49.00 and maintaining a Buy rating.
The firm's analyst updated their model to reflect the fourth fiscal quarter earnings and management's forecast for fiscal year 2025.
Madison Square Garden Entertainment has provided guidance indicating an anticipated growth in adjusted operating income (AOI) for the fiscal year 2025, projecting an increase in the high-single to low-double-digit range.
Guggenheim's own projections are set at $230 million, marking a year-over-year increase of 9%, which is an upward revision from the previous estimate of $218 million.
The company's bookings business is reportedly performing well, with current figures surpassing those of fiscal year 2024.
Despite the conclusion of Billy Joel's residency at The Garden, which MSGE was promoting, consumer demand is described as remaining strong.
Excluding the impact of Billy Joel's residency, revenue growth is expected to be in the mid-single digits while including it, the growth is forecasted to be in the low-single digits, the analyst noted.
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