Live Nation Entertainment Earns an Upgrade at Roth/MKM

Roth/MKM analysts raised their rating of Live Nation Entertainment (NYSE:LYV) from Neutral to Buy, adjusting the price target to $114.00 from the earlier $92.00.

The analysts mentioned that the outlook for Live Nation remains robust with significant upside potential. The ongoing strong demand for live events and concerts is expected to position Live Nation favorably for higher-than-average growth in the upcoming years. The analysts believe that their revenue and AOI estimates, which are already above the consensus, might still be understated.

The analysts also anticipate that the DOJ's investigation into Live Nation will be resolved this year with minimal impact, which should alleviate a major valuation concern.

Morgan Stanley raised its rating on Live Nation Entertainment (NYSE:LYV) from Equal-Weight to Overweight, with an increase in the price target from $100 to $110 per share. As a result, the company’s shares surged more than 5% intra-day today.

The analysts highlighted that as we approach 2024, the music and live events sector appears to be the strongest in the Media & Entertainment (M&E) industry. They emphasized Live Nation's unique position to leverage the growing global live music market, expressing a heightened confidence in the company's long-term growth prospects.

The analysts also pointed out Live Nation's robust growth post-pandemic and the ongoing development of Venue Nation, which has contributed to an improvement in the company's return on invested capital (ROIC). This improvement has been from low single-digit to mid-single-digit percentages pre-pandemic to mid-teens percentages currently.

Further, Mansson-Perrone mentioned that additional disclosures about Venue Nation and an analysis of future fan engagement opportunities strengthen the belief in more potential upside than risk to the consensus expectations for 2024.

The investment bank anticipates that the ongoing shift in consumer spending towards experiential purchases will continue to thrive, even amidst a softer macroeconomic environment.

Analysts from Evercore ISI changed their rating on Live Nation Entertainment (NYSE:LYV), raising it from In Line to Outperform and setting a price target at $100.00. As a result, shares gained more than 2% intra-day today.

The analysts mentioned that the prevailing regulatory challenges, questions regarding growth in 2024, and the potential for exceeding short-term expectations make Live Nation's stock a compelling buy. While Ticketmaster has faced antitrust inquiries in the past, the analysts aren’t convinced that the ongoing DOJ probe will have a significant impact on LYV's stock, currently priced at $78 per share.

The analysts highlighted the company's promising potential for continuous growth in the low double digits, fueled by rising public interest in concerts and live shows. They forecast a 5% increase in the Q3/23 adjusted operating income (AOI) and a 2% boost for the year 2023's AOI.

The company is scheduled to announce its third-quarter results for 2023 on Nov 2.