Sphere Entertainment Expands Beyond Las Vegas, CEO Calls New Abu Dhabi Venue a ‘Significant Milestone’ – Sphere Entertainment (NYSE:SPHR)

Sphere Entertainment Co. SPHR is building a new venue in Abu Dhabi, the capital of the United Arab Emirates.

The details: The Sphere location in Abu Dhabi would be the second in the world, following the opening of the Sphere location in Las Vegas in 2023.

Abu Dhabi’s Sphere will mirror the size of the 20,000-seat Sphere in Las Vegas and plans to offer a unique visitor experience with events, concerts and shows.

UAE officials expect Sphere to be a year-round tourism draw and said the partnership is in line with the country’s Tourism Strategy 2030, which aims to establish Abu Dhabi as a hub for culture and innovation .

“We are excited to bring Sphere to Abu Dhabi in collaboration with Sphere Entertainment and offer our residents and visitors an exceptional new form of entertainment. Sphere Abu Dhabi will seamlessly combine advanced technology with captivating storytelling, creating unforgettable memories for all visitors,” said HE Mohamed Khalifa Al MubarakChairman of DCT Abu Dhabi.

See also: Amazon analyst expects Q3 results with sales growth, margin expansion and relatively stable e-commerce demand

Sphere Franchise Opportunity: Sphere operates a global franchise model whereby DCT Abu Dhabi pays a franchise origination fee for the right to build the venue using Sphere’s designs, technology and intellectual property. Once constructed, DCT Abu Dhabi will also pay annual royalties for creative and artistic content licensed from Sphere Entertainment, including use of the Sphere brand, proprietary technology and operational services related to venue operations and technology, as well as commercial and strategic Advisory support.

“Sphere’s vision has always included a global network of venues, and today’s announcement is an important milestone towards that goal,” he said James L. DolanCEO of Sphere Entertainment.

Analyst Take: In August, JPMorgan analyst David Karnovsky has upgraded Sphere Entertainment stock to Overweight and raised its price target from $37 to $57.

Karnovsky said Sphere’s shares are undervalued given the company’s international franchising capabilities.

“The financials since inception continue to give us confidence that the company will be able to attract international franchise partners, the potential upside of which we believe is not reflected in the share price,” he said.

Price promotion: According to Benzinga Pro, shares of Sphere Entertainment rose 1.82% in premarket trading on Wednesday after gaining 6.35% following Tuesday’s announcement.

Also read:

Image: Courtesy of Sphere Entertainment, Co.