Summer in Vegas

Research evidence excerpt

Summer in Vegas

Idea

July 24, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMSphere Entertainment Co | North America Cameron Mansson-Perrone

Equity Analyst

Summer in Vegas Cameron.Mansson-Perrone@morganstanley.comDaniel Duran +1 212 761-7079

Daniel.Duran@morganstanley.com +1 212 761-4822

We see SPHR shares as offering attractive and unique exposure Sean Diffley, CFA

to healthy live entertainment trends, with expectations for new Equity Analyst

Sean.DIFFLEY@morganstanley.com +1 212 761-5868

spheres supporting long-term FCF growth and our OW view. We

anticipate 2Q earnings will reflect softer summer seasonality in Sphere Entertainment Co (SPHR.N, SPHR UN)

Media & Entertainment | United States of America

Vegas, with trends improving through year-end.

Stock Rating Overweight

Industry View In-Line

Key Takeaways PriceShr price,targetclose (Jul 23, 2026) $170.00$133.31

Mkt cap, curr (mm) $5,104

We continue to believe that the success of Wizard of Oz to-date should help the 52-Week Range $174.30-37.98

company secure additional spheres, underwriting three incremental by 2030. Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

Seasonality is typically lower during the summer months, with YoY Vegas EPS ($)** 0.90 (2.44) (1.16) (0.48)

Prior EPS ($)** - (2.32) (1.05) (0.37)

visitation growth muted; our estimates attempt to reflect this. P/E NM NM NM NM

EPS ($)§ (1.11) (8.11) (6.40) (1.52)

We layer in an additional ~$4mm of SG&A in 2Q reflecting estimated mark-to- Div yld (%) 0.0 0.0 0.0 0.0

market equity awards, with longer-term estimates largely unchanged.

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

Thematically, we favor businesses that are insulated from AI disruption, including ** = Based on consensus methodology