Goldman Initiates Buy On Vegas Sphere, Says "Fad" Concerns Exaggerated

Shares of the Las Vegas Sphere (officially the MSG Sphere), owned by Sphere Entertainment Co (SPHR), have plunged into a vicious bear market this year amid fears that its subsidiary, MSG Networks—a regional sports network—faces potential bankruptcy. Nevertheless, Goldman Sachs analysts Stephen Laszczyk and Antares Tobelem have initiated coverage with a "Buy" rating, arguing that the upside potential for the Las Vegas Sphere is solid and that the market has overstated the risks tied to MSG Networks. 

MSG bankruptcy fears have sent SPHR shares tumbling 36% since peaking at around $48 in mid-February. Short interest has surged to 7.7 million shares—approximately 29.5% of the total float.