NEW YORK (TheStreet) -- Shares of Madison Square Garden (MSG) - Get Madison Square Garden Co. Class A Report closed flat at 0.08% to $75.16 on Wednesday after being higher throughout the day following Jefferies initiation of coverage with a "hold" rating and a $85 price target.
"We believe that Madison Square Garden is in a unique position to capitalize on the rising value of sports content as it owns regional sports networks as well as two iconic sports franchises," Jefferies analysts said. The entertainment company owns the Knicks, Rangers, the Garden, and two regional sports networks.
The firm estimates that Madison Square Garden's assets are worth more than $8.5 billion, or $110 per share, though its value depends on an outright sale of any of these assets. Jefferies said that it will be difficult for the stock to trade at fair market value and will more likely trade at a discount if no sales are made.
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The analysts believe that the regional sports networks could be worth up to $3.8 billion, or $49 per share, in a sale and that the Knicks and Rangers combined are worth $2.7 billion, or $35 per share.
In addition, Jefferies F2015 revenue and EPS estimates are $1.52 billion and $1.72, assuming there are share repurchases of $163 million.
Risks that could add to a discount in the share price include poor team performance and risk of a lockout, and the Madison Square Garden networks experiencing sub losses as subscribers shift to lower tier packages with "sports-lite" programming, analysts noted.
Madison Square Garden is an integrated sports, entertainment and media business company.