LiveOne stock price target lowered to $1.40 by Freedom Broker

Investing.com - Freedom Broker lowered its price target on LiveOne Inc. (NASDAQ:LVO) to $1.40 from $1.50 on Monday, while maintaining a Buy rating on the stock. Currently trading at $0.77, the stock has experienced significant volatility with a beta of 1.67 and a year-to-date decline of nearly 49%.

The price target reduction follows LiveOne’s mixed results for fiscal year 2025, with revenue of $114.41M and adjusted EBITDA broadly aligning with management guidance and analyst forecasts, primarily driven by continued momentum at PodcastOne. According to InvestingPro data, analysts anticipate a sales decline in the current year.

Performance was weighed down by Slacker Radio, which negatively impacted consolidated financials despite growing adoption of the LiveOne 2.0 platform among Tesla (NASDAQ:TSLA) owners, as conversion rates to Premium and Plus paid subscriptions remained subdued.

Freedom Broker revised downward its revenue and net income forecasts for fiscal years 2026-2027, noting that the decline in Slacker Radio revenue following the updated Tesla agreement exceeded expectations.

The updated $1.40 price target is based on an equally weighted valuation using 13x EV/EBITDA (2026) and 1.8x EV/Sales (2026) multiples, according to the firm’s analysis. For deeper insights into LiveOne’s valuation and 8 additional key investment tips, visit InvestingPro.

In other recent news, LiveOne Inc. reported its financial results for the fourth quarter of 2025, which showed a significant earnings miss and a decline in revenue. The company posted an earnings per share (EPS) of -$0.08, which was below the forecasted -$0.0416, indicating a 92.31% negative surprise. Revenue for the quarter was $19.3 million, falling short of the expected $24.02 million by 19.69%. Despite these challenges, the company is focusing on expanding its podcast network and AI initiatives, projecting podcast revenue to grow to $55-60 million with an expected EBITDA of $3.5-$5 million.

Looking forward, LiveOne is preparing to launch a major B2B partnership in August, which could significantly impact its subscriber base. The company has also replaced its credit line with JGB Capital, enhancing its financial position. Analysts from ROTH Capital Partners (WA:CPAP) have engaged with LiveOne’s leadership, discussing the company’s strategic direction in AI and Web3/crypto content. These developments reflect LiveOne’s efforts to navigate financial challenges while pursuing growth opportunities in emerging digital content markets.

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