Live Nation Target Cut on Concern Coronavirus Will Deter Concertgoers and Hurt Ticket Sales

Live Nation's price target was cut to $69 a share from $78 at Berenberg on concern coronavirus will deter concertgoers and hurt ticket sales.
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Shares of Live Nation  (LYV) - Get Report dropped Thursday after analysts at Berenberg predicted that the live-events-promotion company will have a tough time dealing with coronavirus fallout.

Berenberg lowered its price target on Live Nation to $69 a share from $78. The new price target still indicates 15% potential upside from the stock’s Wednesday close at $59.77.

Live Nation and its business model are in a tough position when people are limiting their contact with strangers in confined areas like concert halls.

The coronavirus “brings significant uncertainty to Live Nation’s business,” and concern about the virus “could meaningfully reduce consumer appetite for purchasing tickets and attending live events,” according to Berenberg.

A potential tailwind for the Beverly Hills, Calif., company is that the majority of Live Nation’s events are weighted to the second half, when the current sentiment about the virus could abate.

Year to date through Wednesday, Live Nation stock has dropped 16%. At last check, the shares were 8.6% lower at $54.66.

Italy’s Seri A professional soccer league said it would resume matches this weekend in empty stadiums due to the coronavirus outbreak in the country. Italy’s government decreed that all sporting events must take place without spectators until April 3.

Six of the league’s matches were postponed last week, including Juventus vs. Inter Milan, one of the season’s biggest matches.