On Thursday, Rosenblatt Securities adjusted its outlook on Live Nation Entertainment (NYSE:LYV)shares, reducing its price target to $119 from the previous $124 while maintaining a Buy rating. The firm indicated that the adjustment comes as a response to signs of an industry slowdown, which is evident as they anticipate the company's first quarter earnings report for 2024.
The firm noted that the year-over-year growth rate for U.S. personal consumption expenditures (PCE) on live entertainment, excluding sports, decelerated to 6% in the first quarter of 2024. This is the first time in two years that growth has been in the single digits. The data suggests a potential shift towards a post-pandemic normalization phase in the live entertainment sector.
Despite the reduction in the price target, Rosenblatt Securities expressed confidence in Live Nation's ability to navigate through the changing industry landscape. The firm's commentary highlighted expectations that Live Nation will handle the transition effectively. To align with the observed slowdown, the firm has also revised its adjusted operating income (AOI) estimates for the company.
The adjustment in Live Nation's price target reflects a cautious yet optimistic view of the company's performance amidst industry changes. The firm's analysis points to a more moderate growth environment for live entertainment as the market adjusts following the unusual conditions of the past two years.
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