Sphere cut to Sell at Benchmark on scalability, profitability concerns

As previously reported, Benchmark downgraded Sphere Entertainment to Sell from Hold with a $40 price target, citing concerns over the Sphere’s scalability, high production costs, and “a potentially underwhelming profitability outlook.” A weakening consumer environment may negatively impact the company’s Las Vegas non-gaming entertainment business, while MSG Networks faces significant debt maturity challenges, the analyst tells investors.