Live Nation’s stock will rock in 2025, this analyst says

The outlook is bright for Live Nation (Live Nation Stock Quote, Chart, News, Analysts, Financials NYSE:LYV).

So says Roth MKM analyst Eric Handler. In a research update to clients December 12, the analyst maintained his “Buy” rating on LYV and raised his price target on the stock from $132.00 to $152.00. He says he sees strong double-digit growth on the horizon for the company.

“Strong secular trends, fueled by greater global accessibility to music, more consumers buying tickets, and an expanding number of touring artists should allow Live Nation to sustain a multi-year double-digit AOI growth outlook Looking to 2025, a year which will see an acceleration in stadium shows and the continued expansion of Venue Nation, we are modestly raising our estimates to reflect the combination of the secular and company specific drivers,” Handler wrote.

The analyst thinks LYV will post EBITDA of $2.15-billion on revenue of $23.1-billion in fiscal 2024. He expects those numbers will improve to EBITDA of $2.37-billion on revenue of $26.5-billion in fiscal 2025.

“We are raising our revenue and AOI forecasts of $26.532bn (+15%) and $2.372bn (+10%), respectively, from $26.339bn and $2.355bn,” Handler added. “Double-digit growth is expected from all three segments largely due to the strong pipeline of stadium concerts, which should surpass 2023 record levels. Recent stadium tour announcements have come from a wide variety of musical acts including Kendrick Lamar and SZA, AC/DC, Post Malone, My Chemical Romance, Shakira, Coldplay and Stray Kids (KPop). Because of the larger volume of stadium events (none of which are Live Nation venues), AOI margin is likely to modestly contract y/y.”