National Basketball Association

MSG Co. downgraded amid NBA lockout

Published Aug. 23, 2011 3:15 p.m. ET

foxsports

The NBA lockout claimed a stock market victim Tuesday, as shares of New York Knicks parent Madison Square Garden Co. (MSG) were downgraded to neutral by Bank of America Merrill Lynch -- in part because of lost income caused by the work stoppage.

"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," the analysts wrote in a note.

They lowered their target price for the stock to $28. MSG agreed to buy the LA Forum concert venue late last year.

Shares of MSG were down a fraction to $22.72 at Tuesday's US market open.