Madison Square Garden Entertainment Named Best Idea for 2025 at Guggenheim

Guggenheim analysts reiterated their Buy rating and a $48 price target for Madison Square Garden Entertainment (NYSE:MSGE), positioning the company as their top investment idea for 2025.

Despite recent pressure on shares, which have declined approximately 23% following revised earnings guidance tied to event scheduling at The Garden, MSGE is poised for a strong rebound, as per the analysts. The company remains on track for close to double-digit adjusted operating income (AOI) growth for fiscal 2025, despite these temporary headwinds.

Madison Square Garden Entertainment benefits from favorable long-term trends in live entertainment, with tough year-over-year comparisons for The Garden expected to ease by the third fiscal quarter. Its iconic venues, located in New York City, the largest media market in the United States, provide a significant competitive edge. Additionally, the analysts mentioned that the company’s continued focus on returning capital to shareholders, evidenced by a recent $25 million stock repurchase, underscores its commitment to enhancing shareholder value. There is also strategic potential surrounding developments at Penn Station, an opportunity that could gain momentum under the Trump administration starting in January.