Morgan Stanley upgraded shares of Live Nation Entertainment (NYSE:LYV) to Overweight from Equal-Weight in a note Thursday, raising the price target for the stock to $110 from $100 per share, reflecting a potential 25% upside.
Analysts said that as we head into 2024, the fundamentals in music and live events are the healthiest in M&E.
"We have increased conviction in durable long-term growth given Live Nation's unique ability to capture the expanding global live music opportunity," said the analysts.
The analysts also noted the company's strong post-pandemic growth and continued expansion of Venue Nation, "helping ROIC improve from LSD-MSD % ROIC pre-pandemic to mid-teens today."
"Incremental Venue Nation disclosure and our analysis on the fan opportunity ahead support conviction around more upside than risk to consensus '24 expectations," added the analysts.
The investment bank sees the secular shift in consumer spending to experiences powering through a softer macro. The firm is also comfortable with regulatory risk to LYV at current levels.