Live Nation Entertainment Inc (NYSE: LYV) shares were declining in early trading on Friday.
The company is poised to benefit from the "positive secular demand" for live events and concerts, which is likely to drive for "above-trend growth over the next several years," according to Roth Capital Partners.
The Live Nation Entertainment Analyst: Eric Handler upgraded the rating for Live Nation Entertainment to Buy, while raising the price target from $92 to $114.
The Live Nation Entertainment Thesis: The current estimates for the company's revenue and AOI (adjusted operating income) "should prove conservative," Handler said in the upgrade note.
"Robust demand which is being fueled by a growing supply of touring artists, the globalization of the music, and Live Nation's expanding geographic presence should continue for the next few years," the analyst wrote.
"Our 2024 above-consensus, full-year revenue and AOI estimates have nominally increased to $23.67bn (+9%) and $2.068bn (+12%), respectively, versus consensus at $23.4bn and $2.046bn," while recent trends indicate the figures could "go higher as the year progresses," Handler stated.
He added that the Department of Justice's investigation of Live Nation Entertainment is likely to resolve in 2024, "with minimal impact, which should remove a valuation overhang."
LYV Price Action: Shares of Live Nation Entertainment had declined by 0.91% to $90.48 at the time of publication Friday.