On Wednesday, Berenberg increased its price target on CTS (NYSE:CTS) Eventim (EVD:GR) shares to EUR100.00, up from the previous EUR95.00, while reiterating a Buy rating for the stock. The adjustment follows CTS Eventim's recent strategic acquisition of See Tickets, which is expected to enhance the company's presence in the UK and US ticketing markets.
The firm's analyst noted that CTS Eventim has historically struggled to establish a significant presence in these regions. The acquisition now provides the company with "attractive exposure" to the UK and US markets.
Additionally, the analyst pointed to the ongoing legal issues faced by Live Nation-Ticketmaster in the US, suggesting that these could result in market-share gains for CTS Eventim, thereby offering new avenues for regional growth.
The analyst emphasized that even without considering the substantial potential in the US market, CTS Eventim is still poised for growth. Specifically, the company is projected to achieve an 11% mid-term earnings per share (EPS) compound annual growth rate (CAGR).
CTS Eventim's move to expand its international footprint through the acquisition of See Tickets comes at a time when the live event industry is recovering from the impacts of the pandemic. The company's efforts to diversify its market presence could potentially lead to increased revenue streams and a stronger competitive position in the global ticketing industry.
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