Morgan Stanley Forecasts Strong Price Appreciation for Sphere Entertainment (NYSE:SPHR) Stock

Key Points

• Morgan Stanley raised its price target on Sphere Entertainment to $158 and kept an overweight rating, implying about a 10.8% upside from the prior close.
• Analyst sentiment is broadly positive with eight Buys, two Holds and one Sell, but the consensus price target remains lower at $122.75, reflecting mixed views across firms.
• Sphere reported a strong quarterly beat (EPS $1.23 vs. ($0.12) est., revenue $394.3M vs. $377.6M, revenue +27.9% YoY) despite a negative return on equity and analysts forecasting a full-year EPS of -2.51.

Sphere Entertainment (NYSE:SPHR - Get Free Report) had its price target hoisted by equities researchers at Morgan Stanley from $135.00 to $158.00 in a report released on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's price objective indicates a potential upside of 10.80% from the stock's previous close.

A number of other brokerages have also recently weighed in on SPHR. JPMorgan Chase & Co. raised their target price on shares of Sphere Entertainment from $91.00 to $110.00 and gave the stock an "overweight" rating in a report on Thursday, January 15th. Benchmark upgraded shares of Sphere Entertainment from a "sell" rating to a "hold" rating in a report on Tuesday, February 17th. Seaport Research Partners upgraded shares of Sphere Entertainment from a "hold" rating to a "strong-buy" rating in a report on Thursday, January 8th. The Goldman Sachs Group raised their target price on shares of Sphere Entertainment from $126.00 to $140.00 and gave the stock a "buy" rating in a report on Wednesday, April 8th. Finally, New Street Research set a $110.00 target price on shares of Sphere Entertainment in a report on Thursday, January 15th. Eight investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $122.75.

Sphere Entertainment Price Performance

NYSE SPHR opened at $142.61 on Friday. Sphere Entertainment has a 12 month low of $26.54 and a 12 month high of $142.66. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.09 and a quick ratio of 1.09. The firm has a market capitalization of $5.06 billion, a PE ratio of -316.90 and a beta of 1.67. The company's 50 day simple moving average is $120.41 and its 200 day simple moving average is $98.05.

Sphere Entertainment (NYSE:SPHR - Get Free Report) last issued its earnings results on Thursday, February 12th. The company reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of ($0.12) by $1.35. The firm had revenue of $394.28 million during the quarter, compared to analysts' expectations of $377.60 million. Sphere Entertainment had a net margin of 2.16% and a negative return on equity of 8.84%. The firm's revenue for the quarter was up 27.9% compared to the same quarter last year. During the same period last year, the firm posted ($3.49) earnings per share. As a group, equities research analysts forecast that Sphere Entertainment will post -2.51 EPS for the current fiscal year.

Hedge Funds Weigh In On Sphere Entertainment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. SG Americas Securities LLC acquired a new position in Sphere Entertainment in the 3rd quarter worth approximately $2,937,000. Legato Capital Management LLC acquired a new position in Sphere Entertainment in the 3rd quarter worth approximately $661,000. Kelleher Financial Advisors acquired a new position in Sphere Entertainment in the 4th quarter worth approximately $389,000. Citigroup Inc. boosted its stake in Sphere Entertainment by 94.0% in the 3rd quarter. Citigroup Inc. now owns 50,592 shares of the company's stock worth $3,143,000 after purchasing an additional 24,520 shares during the period. Finally, New York State Common Retirement Fund lifted its position in Sphere Entertainment by 146.1% in the 3rd quarter. New York State Common Retirement Fund now owns 20,784 shares of the company's stock worth $1,291,000 after buying an additional 12,338 shares in the last quarter. Institutional investors and hedge funds own 92.03% of the company's stock.

Sphere Entertainment Company Profile

Sphere Entertainment Co NYSE: SPHR is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world.

At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems.

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