NobleCon18 highlights. Dmitry Kozko, CEO, provided an optimistic tone as the company navigates the disappointing performance of NASCAR Ignition launch and prepares for the launch of several game franchises over the next year. He appeared to be sanguine about the firm's capability to rebound given a favorable long-term, 10-year runway for its licenses. A replay of his presentation may be found here.Roadmap still on track. The company plans to release new franchises in 2023 such as NASCAR (new mobile title), 24 Hours of Le Mans '23, and INDYCAR '23. Given disruptions to the company's Moscow development team due to Russian sanctions, the timeline is favorable and appears to be on track. Esports in the spotlight. A key purpose of the company's esports division is to convert audience members into consumers of the company's games. In 2021, the company held the world's largest esports racing event when it hosted 24 Hours of Le Mans Virtual, which drew 81 million fans. Events like these serve as powerful advertisement for the company's game franchises to racing fans.Rating upgraded to Outperform. The MSGM shares are down 69% from recent highs in February. In our view, the shares reflect the disappointment of the launch of NASCAR Ignition and the disruption in its workforce caused by the Russia/Ukraine war. We believe that the company has a favorable runway to right its course and improve its revenue trajectory with several game launches scheduled over the next year. Price target set at $2.50. Near current levels, the MSGM shares trade at 0.1 times EV to our fiscal 2023 revenue estimate or below the 1.0 times peer's multiple mean. In our view, the shares are an option value based on the prospect that the company will navigate toward improved fundamental performance. In addition, we would not rule out the prospect the company would be a take-over candidate given its attractive game franchises/licenses and consolidation in the industry. Read More >>