Tomorrow’s Trade Idea, Today
SPHERE IS ON A ROLL
Momentum Builds Beyond Vegas
Sphere Entertainment (SPHR) is gaining momentum as its long-term strategy comes into focus.
BTIG upgraded the live entertainment company to Buy from Neutral, citing clearer visibility into growth and monetization.
Analyst Tyler DiMatteo set a new price target of $110, implying nearly 11% upside from recent levels.
The call follows a sharp rally in the stock over the past year, driven by improving confidence in Sphere’s expansion plans.
A Second Act Takes Shape
The latest catalyst is Sphere’s plan to build a second US venue in Washington, DC.
The smaller venue, with about 6,000 seats, contrasts with the 20,000-seat Las Vegas Sphere and fits into management’s strategy of operating both large and mid-sized locations.
BTIG estimates the DC venue could generate $30-$50 million in annual high-margin revenue.
With Las Vegas already operating and additional Spheres planned for DC and Abu Dhabi, DiMatteo says the portfolio expansion is becoming more concrete.
A Flywheel Of Content And Ads
Beyond new venues, BTIG points to upside from advertising and premium content licensing, similar to the immersive Wizard of Oz experience. Incremental sponsorship deals could further boost revenue.
DiMatteo describes a flywheel effect where premium content drives demand, supports pricing, and attracts advertising dollars. As Sphere builds out a global network, BTIG believes the company’s growth story is gaining credibility.
