Madison Square Garden Co. Stock Downgraded
The current National Basketball Association lockout has led to the downgrade of Madison Square Garden Co.’s stock (MSG). MSG, parent company of the New York Knicks, saw its stock downgraded to neutral by Bank of America Merrill Lynch due to lost income during the league lockout.
“Despite our continued belief in MSG’s robust long-term story…we think the shares will be unlikely to outperform over the near-term with $90 million of adjusted operating cash flow at risk from a full-season NBA lockout and a possible LA Forum acquisition on the horizon,” wrote the analysts.
A neutral stock is a security that is neither bullish nor bearish. The Knicks’ and their parent company MSG are facing losses in the early stages of the lockout, just imagine the future for both parties if the entire 2011-2012 season is cancelled.