Ticketmaster stock recently scored an upgrade following news of the company’s plans to take on dynamic pricing.
Thomas Weisel Partners analyst Benjamin Mogil raised his rating on TM from market weight to overweight and boosted the company’s stock target from $8 to $12 Sept. 8, according to Barron’s.
While Ticketmaster and Live Nation await a decision on their pending merger from the U.S. Department of Justice, Mogil wrote in a research note that the ticketing giant’s competitive position has improved – no matter what happens with the deal.
“Ticketmaster has a number of options available to it and any fallout from the merger not going through is likely short-term in duration,” he said.
Dynamic pricing could drive new revenues TM’s way by recapturing some sales for the primary market, Mogil explained.
“The impact on reselling will likely be that all but the strongest shows where the resale premiums are highest will be impacted by these changes in the primary market.”