With a market cap of $34.4 billion, Live Nation Entertainment, Inc. (LYV) is a global live entertainment company that operates through its Concerts, Ticketing, and Sponsorship & Advertising segments. It owns, operates, or has exclusive booking rights for numerous venues, including House of Blues and The Fillmore, while also managing ticketing services through platforms like Ticketmaster.
Shares of the ticket seller and concert promoter have outperformed the broader market over the past 52 weeks. LYV has climbed 67.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 21.8%. On a YTD basis, LYV surged 14.3%, compared to SPX's 2.7% gain.
Narrowing the focus, the Beverly Hills, California-based company has also outpaced the Communication Services Select Sector SPDR ETF Fund's (XLC) 29.8% rise over the past 52 weeks and a 6.9% increase on a YTD basis.
Despite reporting weaker-than-expected Q3 revenue of $7.7 billion on Nov. 11, LYV shares surged 4.7% the next day due to strong EPS of $1.66, which beat estimates. The company’s optimistic outlook, driven by an unprecedented summer concert season and a record-breaking show pipeline for 2024 and 2025, boosted market confidence. Double-digit AOI (Adjusted Operating Income) growth projections further reassured shareholders. Additionally, cost controls led to a drop in operating expenses to $5.8 billion.
For fiscal 2024, which ended in December, analysts expect LYV's EPS to decline 27.7% year-over-year to $0.99. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last two quarters while missing on two other occasions.
Among the 19 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” and one “Hold.”
On Dec. 5, 2024, Guggenheim raised Live Nation’s price target to $155 while maintaining a “Buy” rating. The upgrade reflects a record large-venue slate for 2025, strong indicators, and effective execution of growth strategies.
As of writing, LYV is trading below the mean price target of $151.83. The Street-high price target of $163 implies a potential upside of 10.1% from the current price levels.
