Deutsche Bank picked up coverage on Vivid Seats ( NASDAQ: SEAT ) with a Hold rating and price target of $9.
The firm sees Vivid Seat ( SEAT ) as a key beneficiary of the growing demand for live events, which has been fueled by the shift in preferences to experiences over physical goods in the post-pandemic period.
"While disruptive, the pandemic has resulted in material excess savings ($2.4tn), which should disproportionally be redeployed towards experiences. This should create a favorable longer-term demand backdrop for on-demand, secondary ticketing platforms such as Vivid."
Deutsche Bank has a tempered outlook for three-year industry CAGR forecast of 6% due to the uncertain macro environment and notes that SEAT still lacks the brand recognition of even smaller rivals such as SeatGeek.
While Vivid's shift to brand marketing, loyalty program, and partnerships are seen as key differentiators, DB is cautious on the stock due to the lack of macro clarity and the resulting impact on live-events demand.
The Seeking Alpha Quant Rating on Vivid Seats is also at Hold.
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Vivid Seats is viewed cautiously by Deutsche Bank due to macro backdrop