NEW YORK (TheStreet) -- Live Nation Entertainment (LYV) shares are up 2.1% to $22.43 after being upgraded to "buy" from "neutral" by analysts at Northcoast Research, who also set a $28 price target on the company's shares on Tuesday.
The concert and live entertainment company reported second quarter earnings of 11 cents per diluted share on July 31, in line with analysts expectations, on revenue of $1.66 billion that was ahead of the Street's consensus guidance.
The new price target represents a 24.8% upside from the stock's current price.
TheStreet Ratings team rates LIVE NATION ENTERTAINMENT as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIVE NATION ENTERTAINMENT (LYV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, LYV's share price has jumped by 27.40%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LYV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LIVE NATION ENTERTAINMENT has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LIVE NATION ENTERTAINMENT continued to lose money by earning -$0.23 versus -$0.87 in the prior year. This year, the market expects an improvement in earnings (-$0.02 versus -$0.23).
- LYV, with its decline in revenue, underperformed when compared the industry average of 12.4%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite the current debt-to-equity ratio of 1.58, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.91 is weak.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, LIVE NATION ENTERTAINMENT's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: LYV Ratings Report
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