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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuThe spinoff of the New York Rangers hockey team and New York Knicks basketball franchise from the former Madison Square Garden Sports is likely to unlock value for shareholders of both companies, according to Guggenheim Securities. The investment firm initiated coverage of MSG Rangers with a buy rating and a $278 price target, implying nearly 57% upside from Tuesday’s close. Guggenheim also began research coverage of MSG Knickerbockers with a buy rating and a $445 price target that would equal 46% upside from the last close. There are “multiple paths to unlock further value” for both stocks, analyst Curry Baker said Tuesday in a note to clients. MSG Rangers was spun off from MSG Knickerbockers, formerly Madison Square Garden Sports, late Monday. Shares of the hockey team traded down nearly 7% on Tuesday, closing at $177.61, while the Knicks gained nearly 6% to finish at $305.42. Their separation comes after the Knicks won their first National Basketball Association championship in 53 years. The Rangers have struggled in the rink this year. Baker said the spinoff opens multiple catalysts for MSG Knickerbockers, which should help boost its stock. “We continue to see a number of potential catalysts to unlock value at MSGK … we estimate NBA expansion in Las Vegas and Seattle (link) could yield [$450-$700 million dollars] for the Knicks, or ~$13- $20/share … [in addition to a potential boost from] the NBA European expansion,” the analyst wrote. Baker also said MSG Rangers should benefit from the spinout, pointing to potential tax benefits. “The split of the Rangers from the Knicks provides increased flexibility and optionality to unlock further value (potentially outright sell or selling a minority stake),” he wrote. In addition, “the looming tax code change (Section 162m) starting in [fiscal year 2028] provides a compelling reason to potentially explore strategic action.”Read More