What happened
One of the newest entertainment stocks on the block, Madison Square Garden Entertainment (SPHR 1.84%), was also one of the best performers in the sector over the past few trading days.
As of Friday morning before market open, the company's shares had risen by almost 25% week to date, according to data compiled by S&P Global Market Intelligence. A glowing note from an analyst, solid quarterly results, and a potentially lucrative asset sale were the catalysts.
So what
Thursday was the day MSG Entertainment unveiled its third quarter of fiscal 2023 figures. These showed that the live entertainment purveyor's revenue grew by 4% year over year to slightly over $201 million. In a dramatic flip that would be the envy of many of the performers who have graced the company's namesake venue, it posted a net income of $21.7 million against the year-ago quarter's $3.9 million loss.
MSG Entertainment is benefiting greatly from the continued hunger for live entertainment, as a strong economy and a pandemic quickly fading into the rearview mirror are driving demand for such performances.
The day before the earnings report came out, Guggenheim analyst Curry Baker initiated coverage of MSG Entertainment stock with a buy recommendation. Baker, who set the price target for the shares at $37 apiece, wrote that "We like MSGE due to its ownership of venue assets around New York City, which we believe are scarce and well positioned to benefit from the growing consumer demand for experiential live entertainment."
Now what
As if those two items weren't filling enough for a trading week, Crain's New York Business broke a story that claimed the company is in talks to sell The Theater at Madison Square Garden, a popular entertainment venue it owns. Citing "three people familiar with the deal," Crain's said a sale could bring in $1 billion, with the potential counterparty being Italy-based developer ASTM Group.
