MSG Sports price target lowered to $235 from $260 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on MSG Sports (MSGS) to $235 from $260 and keeps an Equal Weight rating on the shares. The Knicks and Rangers local media rights were set in 2015, which was “a world before cord-cutting,” says the analyst, who argues that the market generally and MSG Networks (SPHR) specifically “cannot bear these costs.” The firm reduced its estimate of these fees by 50% in FY26 and the 50% reduction in expected rights fees lowers FY26 AOI by 50% as well, leaving the firm forecasting “a business only modestly FCF positive,” the analyst tells investors.