Madison Square Garden Sports stock rallies after analyst boosts target, after Forbes’ $5.8 billion valuation of the Knicks


Shares of Madison Square Garden Sports Corp. MSGS, +4.09% charged up 3.7% toward a 7 1/2-month high in afternoon trading Monday, after J.P. Morgan analyst David Karnovsky boosted his price target by 16%. Karnovsky said his new price target of $220, which is up from $190, reflects the new valuation of the company’s New York Knicks NBA team published by Forbes two weeks ago of $5.8 billion. That valuation is up 16% from a year ago, and marks the seventh straight year that the Knicks the most valuable NBA team, according to Forbes. Karnovsky reiterated the overweight rating he’s had on the stock since October. He said combined with a $1.65 billion valuation of the New York Rangers, he gets a total private asset value for the company of $7.45 billion, compared with an enterprise value of $4.9 billion, which implies an approximate 35% markdown for public investors. Karnovsky feels that a 35% discount is “unreasonably wide.” The stock has soared 20.8% over the past three months, while the S&P 500 SPX, +0.18% has gained 4.8%.

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