With a market cap of $29 billion, Beverly Hills, California-based Live Nation Entertainment, Inc. (LYV) operates in the live entertainment industry, focusing on concert promotion, ticketing, and sponsorship. The company manages venues, promotes events, and provides ticketing and advertising services globally through its three main segments: Concerts; Ticketing; and Sponsorship & Advertising.
Shares of the Ticketmaster-parent have outperformed the broader market over the past 52 weeks. LYV has increased 45.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.3%. In 2024, shares of LYV are up 33.9%, compared to SPX’s 25.1% gain on a YTD basis.
Zooming in further, LYV has slightly outpaced the Communication Services Select Sector SPDR ETF Fund’s (XLC) 42.2% return over the past 52 weeks and 32.5% return on a YTD basis.
Despite reporting weaker-than-expected Q2 revenue of $6 billion on Jul. 30, LYV shares rose 1.7% the next day, driven by a 21% jump in adjusted operating income and a record Q2 margin of 5.4%. Management's positive outlook, emphasizing double-digit AOI growth supported by strong live event demand, high fan spending, and reduced cancellation rates, bolstered investor confidence. Plans to open 14 new venues globally and expand key sponsorships further reassured investors of steady growth into 2024 and 2025.
For the current fiscal year, ending in December, analysts expect LYV’s EPS to decline 15.3% year-over-year to $1.16. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four 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.”
This configuration is slightly more bullish than three months ago, with 16 “Strong Buy“ ratings on the stock.
On Oct. 24, JPMorgan analyst David Karnovsky raised LYV's price target to $137 and maintained an “Overweight“ rating, citing the company's shift toward venue development, which could enhance high-margin revenue and long-term cash flow growth amid potential favorable outcomes in the Department of Justice lawsuit.
As of writing, LYV is trading below the mean price target of $127.50. The Street-high price target of $140, implies a potential upside of 11.9% from the current price levels.
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