Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
On Thursday, Goldman Sachs analyst Stephen Laszczyk updated his assessment of Live Nation Entertainment (NYSE:LYV), increasing the price target from $148.00 to $166.00 while reaffirming a Buy rating on the stock. The company, currently valued at $34.5 billion, has seen its stock surge 70% over the past year and trades near its 52-week high of $152.11. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model. Laszczyk’s evaluation anticipates the fourth-quarter 2024 results to be roughly in line with or surpassing expectations in terms of Attendance, Revenue, and Adjusted Operating Income (AOI), despite anticipated foreign exchange headwinds impacting financial outcomes.
The analyst projects that Live Nation’s Attendance will reach 37.5 million, as estimated by Goldman Sachs (GSe), compared to a consensus of 36.3 million. With trailing twelve-month revenue of $23.3 billion and a gross profit margin of 24.8%, the company maintains its position as a prominent player in the entertainment industry. Revenue is expected to be around $5.6 billion GSe, slightly under the consensus estimate of $5.7 billion. For AOI, the forecast is set at $140 million GSe, which is above the consensus of $135 million. However, the forecast for fourth-quarter 2024 AOI has been slightly reduced to account for the foreign exchange challenges, particularly within the Ticketing and Sponsorship segments.
Looking beyond the immediate quarter, Goldman Sachs maintains a positive outlook for Live Nation’s Revenue and AOI for the year 2025 and beyond. The firm’s projections are 3-4% higher than the consensus expectations. With an overall Financial Health score of "GOOD" from InvestingPro, which offers 18 additional exclusive insights about LYV, the company appears well-positioned for growth. The analyst’s confidence in mid-teens AOI growth for 2025 is bolstered by several factors, including the strong rate of recent concert ticket sales, positive year-on-year trends in Ticketmaster’s engagement data, and the overall robust condition of consumer spending. Discover comprehensive analysis and detailed metrics in the Pro Research Report, available exclusively to InvestingPro subscribers.
Laszczyk’s commentary emphasizes the improving visibility into Live Nation’s financial performance, highlighting the company’s potential to capitalize on its current momentum in the entertainment industry. The analyst’s stance suggests that despite the headwinds from foreign exchange rates, Live Nation’s core business metrics remain on a growth trajectory, supported by solid consumer engagement and a thriving live event market.
In other recent news, Third Point hedge fund, managed by Dan Loeb, has acquired a stake in Live Nation Entertainment following a dip in share price due to a Department of Justice antitrust lawsuit. Analysts from Oppenheimer maintain an Outperform rating on Live Nation, with a target price of $155, citing potential for double-digit Adjusted Operating Income growth and favorable market conditions for live events. Guggenheim analysts also reiterated their Buy rating for Live Nation, forecasting a Compound Annual Growth Rate of 13.4% despite a slight decrease in fourth-quarter revenue projections.
Benchmark analyst Matthew Harrigan recently raised the price target for Live Nation to $160, citing resilience amid regulatory pressures and a strong outlook for the 2025 concert calendar. Meanwhile, the Federal Trade Commission has implemented a rule to ban deceptive pricing and hidden fees in live-event ticketing, a move that is expected to promote fair competition and protect consumers. These are the latest developments for Live Nation, a company that continues to navigate through regulatory challenges while maintaining a positive outlook from various analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.