California-headquartered Live Nation Entertainment, Inc. (LYV), valued at a market cap of $21 billion, is a leading live entertainment company that owns, operates, and holds exclusive booking rights for a range of venues, including iconic locations such as House of Blues, The Fillmore in San Francisco, Brooklyn Bowl, and the Hollywood Palladium.
Shares of the entertainment company have significantly lagged behind the broader market in the last year. While LYV has surged marginally over this time frame, the broader S&P 500 Index ($SPX) has rallied by 15.8%. In 2024, the stock fell 5.9%, compared to SPX’s 8.7% return on a YTD basis.
Zooming in further, the stock also trails behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) 22.7% gains over the past 52 weeks.
LYV stock declined marginally on Jul. 30 after the release of its Q2 earnings report despite the company exceeding EPS expectations. The revenue fell short of projections, which contributed to the stock's drop.
However, it was a good quarter for the company as strong global demand for live events, increased ticket sales, and strategic investments in hospitality positively impacted it. With substantial fan attendance and ticket sales in new markets, Live Nation expects continued growth and aims for double-digit increases in adjusted operating income for 2024 and beyond.
Nonetheless, for the current fiscal year, ending in December, analysts expect LYV’s EPS to decline 14.6% year over year to $1.17. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on two other occasions.
Live Nation Entertainment stock has a consensus “Strong Buy” rating overall. Out of 18 analysts covering the stock, 17 recommend a "Strong Buy," and one suggests a "Moderate Buy."
The consensus rating is slightly more bullish than three months before, with 16 analysts suggesting a “Strong Buy.”
On Aug. 1, Deutsche Bank Aktiengesellschaft (DB) raised its target price for Live Nation Entertainment from $121 to $122 while maintaining a “Buy” rating.
The mean price target of $119.18 suggests a 35.3% premium to LYV from current levels. The Street-high target of $132 represents an upside potential of 49.9%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
