A Benchmark analyst maintained a Buy rating for Live Nation Entertainment (NYSE: NYSE:LYV) with a price target of $132.00.
The endorsement comes in light of recent developments where Oasis announced a major U.S. tour, including performances at SoFi (NASDAQ:SOFI) Stadium in Los Angeles and additional shows at Wembley Stadium, aimed at UK fans who missed the initial ticket sales in August.
The tour is expected to enhance the 2025 global concert calendar, with Mexico and Argentina also anticipated as tour stops.
The analyst highlighted Ticketmaster's role in the concert economy, noting that artists and their managers set the prices, with Ticketmaster absorbing much of the criticism.
In a new move by Live Nation and the Gallagher brothers, efforts are underway to prevent ticket resales above the initial pricing, with such tickets being canceled and reissued to the public.
In other recent news, Live Nation Entertainment reported a 5% increase in fan count during its recent earnings call, with significant growth observed in North America. Despite tour cancellations, the company anticipates continued growth in fan count, particularly in the fourth quarter, and is on track for a 9-10% annual growth rate.
The company also revealed plans for new venues across the U.S., Latin America, and Asia, and expansion in ticketing in South Africa.
However, Live Nation is facing an expanded antitrust lawsuit initiated by the U.S. Justice Department and supported by 40 states and the District of Columbia. The lawsuit alleges that Live Nation-Ticketmaster has monopolized the live concert industry, leading to higher ticket prices and limited choices for consumers.
InvestingPro Insights
As Live Nation Entertainment (NYSE:LYV) gears up for the Oasis U.S. tour, which is set to bolster its 2025 global concert calendar, the company's financial health and market performance are of keen interest to investors. According to real-time data from InvestingPro, Live Nation has a market capitalization of $21.83 billion and a high price-to-earnings (P/E) ratio of 85.07, indicating that the stock is trading at a premium compared to earnings. This is further emphasized by an adjusted P/E ratio for the last twelve months as of Q2 2024 at 65.58. The company's revenue growth is robust, with a 24.02% increase over the last twelve months as of Q2 2024, reflecting potential optimism about future earnings.
An InvestingPro Tip highlights that Live Nation operates with a moderate level of debt, which can be a sign of prudent financial management in the capital-intensive entertainment industry. Moreover, analysts predict the company will be profitable this year, which is consistent with the company's profitability over the last twelve months. This financial outlook may provide some assurance to investors amidst the ongoing scrutiny over ticket pricing practices.
For those considering an investment in Live Nation, additional insights are available on InvestingPro, where several other InvestingPro Tips, including the company's earnings revisions and gross profit margins, can provide a more comprehensive view of the company's financial standing and market position. As of now, there are 8 additional InvestingPro Tips listed for Live Nation, accessible for investors seeking a deeper analysis.
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