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On Tuesday, CFRA analyst Kenneth Leon upgraded Live Nation Entertainment (NYSE:LYV) stock from Hold to Buy, maintaining a price target of $135.00. The upgrade follows a notable decline in the company’s share price, which has seen a correction of nearly 25% from its recent highs. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $130 to $180. Leon highlighted that the target price is based on a forward Total (EPA:TTEF) Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (TEV/EBITDA) multiple of 13.4 times, consistent with Live Nation’s five-year historical average.
Despite reporting a GAAP net loss of $1.55 in the fourth quarter, which is traditionally the weakest season for the company, Live Nation’s outlook remains positive according to Leon. The analyst has maintained the 2025 Earnings Per Share (EPS) estimate at $2.95 and increased the 2026 projection by $0.40 to $3.25, aligning both figures with the consensus. InvestingPro data shows the company generated $23.2 billion in revenue and $1.8 billion in EBITDA over the last twelve months, with a favorable PEG ratio of 0.41 suggesting attractive growth potential relative to its current valuation.
Leon emphasized Live Nation’s global scale, which enables the company to develop, design, and operate venues across all regions. The evolving concert touring ecosystem now favors scale, and Live Nation is well-positioned to benefit from this trend. A sign of the company’s strength is the rapid sale of tickets, with 75% of stadium and arena capacity typically sold within the first week of availability.
Ticketmaster, Live Nation’s ticketing platform, is considered a best-in-class promoter with the ability to maximize ticket sales and pricing for each event. As of December 31, 2024, Live Nation reported unearned deferred revenue on future concerts amounting to $3.7 billion, an increase from $3.4 billion in 2023.
The analyst also noted Live Nation’s financial leverage, with a total debt to capital ratio of 76.9% based on $6.4 billion in total debt, net of future client ticketing. Moreover, Liberty Media’s ownership stake in Live Nation has increased to 30.1%, up from 23.3% the previous year, indicating growing confidence from the major shareholder. InvestingPro analysis reveals a GOOD overall financial health score, with particularly strong metrics in growth and profitability. Subscribers can access 10+ additional ProTips and comprehensive financial metrics in the Pro Research Report, providing deeper insights into Live Nation’s investment potential.
In other recent news, Live Nation Entertainment has seen a series of notable developments. Moody’s Ratings has upgraded Live Nation’s corporate family rating to Ba2 from Ba3, reflecting the company’s strong operational performance and high demand for live events. This rating change affects approximately $5.6 billion of the company’s debt, with the outlook revised to stable. Additionally, CFRA has upgraded Live Nation’s stock rating from Sell to Hold, maintaining a price target of $135, based on a forward TEV/EBITDA multiple. Wolfe Research has adjusted its price target for Live Nation to $165 from $175, while maintaining an Outperform rating, citing potential regulatory challenges as a factor.
In a separate development, Synovus (NYSE:SNV) Bank has acquired the naming rights for the historic Chastain Park Amphitheater in Atlanta, now known as Synovus Bank Amphitheater at Chastain Park. This marks Synovus Bank’s first venture into concert venue naming rights, aiming to strengthen community ties in Georgia. Meanwhile, Engaged Capital LLC is seeking changes at Portillo’s Inc., nominating two new board candidates to address perceived underperformance and enhance growth prospects. These recent updates provide investors with a comprehensive view of the ongoing activities and strategic decisions within these companies.
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