Stifel Upgrades Live Nation To 'Buy'

In a report published Friday, analysts at Stifel upgraded

from Hold to Buy. The price target was set to $31. The upgrade follows the company's 1Q results and guidance announcements, as well as the improving competitive environment for Live Nation. "If one views Live Nation as effectively two different engines, Ticketing and Sponsorship, we increasingly come away with the view that both segments, but particularly Ticketing, are increasingly seeing more favorable competitive dynamics," the analysts stated. Ticketmaster is one of the few platforms that has smoothly transitioned from the physical world to the online mode while maintaining its market leadership. The analysts expect Ticketmaster to be able to continue to gain market share in the secondary market, while new entrants into the primary market are likely to be "relegated to the low-fee general admission market." With regard to the Concerts division, the company's recent acquisitions have had a positive impact on Live Nation's festival exposure. Stifel believes that acquisitions could be a good route to expansion, in terms of festivals, for the company.