UPDATE: ISI Group Initiates Coverage on Madison Square Garden on Multiple Positive Factors

In a report published Wednesday, ISI Group analyst David Joyce initiated coverage on The Madison Square Garden Co. MSG with a Buy rating and $70.00 price target. In the report, ISI Group noted, “We are positive on the story due to the unique, sustainable nature of its legacy assets, the visibility into the majority of MSG's cash flows (locked-in network affiliate fee growth, Knicks and Rangers ~95%+ season ticket renewals), and the leverageable nature of the company's promotional and operational knowledge in live entertainment as it seeks to expand its venue portfolio. Currently, MSG is in a growth mode: renovating The Forum in Los Angeles (a historically well-known venue for sports and music events), developing a new entertainment venue in Las Vegas in partnership with Brooklyn Bowl, and partnering in a new entertainment company with renowned artist manager Irving Azoff.” The Madison Square Garden Co. closed on Tuesday at $54.66.