Billionaire Mario Gabelli’s 10 Small-Cap Stock Picks with Huge Upside Potential

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5. Madison Square Garden Sports Corp. (NYSE:MSGS)

GAMCO Investors’ Stake: $132.85 million

Number of Hedge Fund Holders: 42

Market Capitalization as of May 8: $4.62 billion

Average Upside Potential as of May 8: 31.24%

Madison Square Garden Sports Corp. (NYSE:MSGS) is a professional sports company in the US. It owns and operates a portfolio of assets that consists of the New York Knickerbockers of the NBA (National Basketball Association) and the New York Rangers of the National Hockey League. The company was formerly known as The Madison Square Garden Company.

Macquarie’s Paul Golding increased the price target on Madison Square from $240 to $250, while keeping an Outperform rating on the shares due to the company’s FQ2 2025 results. The company made $357.8 million in FQ2 revenues, as compared to $326.9 million in the prior year period, which was partly driven by the ticketing revenue segment.

The ticketing revenue segment also grew year-over-year due to increases in average ticket yield and average paid attendance per game. This is highlighted by an average combined season ticket renewal rate of ~97%. Madison Square Garden Sports Corp. (NYSE:MSGS) has also strategically priced ticketing offerings and seen increased demand for flexible ticket plans.

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