Sphere Entertainment upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst David Karnovsky upgraded Sphere Entertainment to Overweight from Neutral with a price target of $57, up from $37. The firm says that three quarters in, the Las Vegas Sphere has established itself as a “mainstay in the destination tourism market with travelers and artists alike.” Despite some early concern, the operating model has proven out and can improve further as more original content is added and use cases are found for the venue, the analyst tells investors in a research note. It believes “further valuation optionality” exists for Sphere Entertainment in the form of an MSG Networks term loan work-out, the process for which is now underway. JPMorgan sees an attractive risk/reward at current share levels.