LN Shares Soar After Q2
Live Nation shares leapt $3.53, or 28 percent, August 8 on the heels of a better-than-expected second quarter financial performance, prompting one analyst to upgrade the stock.
Jim Boyle, an analyst with CL King & Associates upgraded the stock to "accumulate" from "neutral," and set a target price of $17, implying upside of 34.7 percent over its July 31 closing price of $12.62.
In a note to clients, Boyle said live music is immune to piracy and added music fans are willing to pay to see their favorite artsts even in harsh economic times.
Goldman Sachs Global Investment Research analyst Mark Wienkes maintained his "buy" rating, citing the Q2 results and lack of evidence of any slowdown in demand for tickets or entertainment spending.
Investors apparently approve of Live Nation’s strategy of putting profits into building its much-ballyhooed ticketing service.
The votes of confidence come despite a plunge in LN quarterly profit of 88 percent – much of which reportedly went into infrastructure for an expected January 1 launch of its in-house ticketing system.