Results 1 to 1 of 1
08-23-2011, 08:29 PM #1
- Join Date
- Jan 2010
Madison Square Garden Co. downgraded amid NBA lockout
The NBA lockout claimed a stock market victim Tuesday, as shares of New York Knicks parent Madison Square Garden Co. (MSG) were downgraded to neutral by Bank of America Merrill Lynch -- in part because of lost income caused by the work stoppage.
"Despite our continued belief in MSG's robust long-term story ... we think the shares will be unlikely to outperform over the near term with $90 million of adjusted operating cash flow at risk from a full-season NBA lockout and a possible LA Forum acquisition on the horizon," the analysts wrote in a note.
They lowered their target price for the stock to $28. MSG agreed to buy the LA Forum concert venue late last year.
Shares of MSG were down a fraction to $22.72 at Tuesday's US market open.