LYV - Live Nation Entertainment rises as Oppenheimer starts with outperform rating

2023-07-21 08:00:06 ET

Live Nation Entertainment ( NYSE: LYV ) shares rose almost 1% in pre-market trading on Friday as Oppenheimer started coverage on the live entertainment company with an outperform rating.

Analyst Jed Kelly, who also put a per-share price target of $110 on Live Nation Entertainment ( LYV ) shares, said the company's scale in concerts is "disproportionally" benefiting from advancements in music streaming that boost distribution and artist discovery, along with creating more demand and increasing network effects.

"This dynamic, along with increasing network effects strengthening LYV's Ticketing/Sponsorship segments, are creating a more durable financial profile, and we confidently underwrite AOI (EBITDA) growing 12% annually into 2025."

Kelly also noted that by proactively partnering with legislators on fair ticketing initiatives, in the wake of last year's Taylor Swift fiasco, the overhang on shares is removed the valuation can return to historical levels.

In mid-November, a set of problematic glitches plagued a massive ticket presale to Swift's first tour in five years and spurred Ticketmaster, owned by Live Nation Entertainment ( LYV ), to call off the public ticket sale , citing record demand from "bots," or automated ticket-seeking software. Ticketmaster said its site was overwhelmed by 3.5B requests for tickets.

That led in short order to some uncomfortable antitrust attention for Ticketmaster parent Live Nation ( LYV ), including interest from the Justice Department and flak from lawmakers .

More on Live Nation Entertainment

• Deeper Dive: The music industry is growing louder
• Benchmark stays bullish on Live Nation as lawmakers keep up ticket scrutiny
• Live Nation Entertainment: Explaining Its 7.1% FCF Yield And Why There's No Upside

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