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Investing.com - Rothschild Redburn upgraded CTS Eventim (ETR:EVD) from Neutral to Buy while slightly lowering its price target to EUR105.00 from EUR109.00, citing an attractive entry point following a recent share price decline.
The German live entertainment and ticketing company has seen its shares fall 20% after missing margin expectations in its second-quarter results, creating what the research firm describes as a 40% valuation discount to Live Nation.
Rothschild Redburn views the issues as "seasonal, fixable and largely isolated to the low-margin Live Entertainment segment," suggesting the current share price represents a buying opportunity with 33% potential upside to its new price target.
The firm characterizes CTS Eventim as "Europe’s answer to US’s Live Nation," noting its dominant market position with a 65% share in promotion and 45% share in ticketing across European markets.
According to the research note, CTS Eventim operates as a "moated regional monopoly" that benefits from structural growth in live music of approximately 7-9% annually while demonstrating resilience during economic downturns.
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