Analyst’s Positive Prognosis
Live Nation Entertainment Inc LYV shares were declining in early trading on Friday.
In the view of Roth Capital Partners, the company is poised to benefit from the “positive secular demand” for live events and concerts, which is likely to drive “above-trend growth over the next several years.”
Analyst’s Rating and Thesis
The Live Nation Entertainment Analyst: Eric Handler upgraded the rating for Live Nation Entertainment to Buy, while raising the price target from $92 to $114.
The Live Nation Entertainment Thesis: The current estimates for the company’s revenue and AOI (adjusted operating income) “should prove conservative,” Handler said in the upgrade note.
Positive Trends and Outlook
“Robust demand which is being fueled by a growing supply of touring artists, the globalization of the music, and Live Nation’s expanding geographic presence should continue for the next few years,” the analyst wrote.
Handler stated, “Our 2024 above-consensus, full-year revenue and AOI estimates have nominally increased to $23.67bn (+9%) and $2.068bn (+12%), respectively, versus consensus at $23.4bn and $2.046bn”, while recent trends indicate the figures could “go higher as the year progresses.”
He added that the Department of Justice’s investigation of Live Nation Entertainment is likely to resolve in 2024, “with minimal impact, which should remove a valuation overhang.”
Price Action and Future Potential
LYV Price Action: Shares of Live Nation Entertainment had declined by 0.91% to $90.48 at the time of publication Friday.