Shares of Live Nation (LYV) fall as antitrust lawsuit emerges

Entertainment company Live Nation Entertainment (NYSE:LYV) is facing legal action from the United States Department of Justice (DOJ) and a group of states, Bloomberg reported. In an imminent lawsuit, LYV is expected to be accused of antitrust violations and will seek to spin off its ticket sales and distribution subsidiary Ticketmaster. On this news, LYV shares fell 6.4% in after-hours trading yesterday.

The lawsuit stems from a Justice Department investigation that began in 2022.

Brief information about LYV and Ticketmaster

Live Nation merged with Ticket Master in 2010. The transaction was approved by the authorities on the condition that Live Nation refrains from discriminatory practices towards concert venues that choose not to use Ticketmaster’s services.

However, subsequent investigations raised concerns that Live Nation had repeatedly breached the terms of that agreement. Additionally, both Live Nation and Ticketmaster have faced ongoing criticism regarding high service fees, inadequate customer service, and potentially anti-competitive practices.

Moreover, mishandling of ‘Taylor Swift’ ticketsEra’s trip” Ticketmaster’s 2022 concert has raised concerns about the company’s dominance in the ticketing industry.

LYV risk analysis

Despite the company’s ongoing involvement in legal investigations, TipRanks’ risk analysis tool shows that Live Nation’s exposure to legal and regulatory risk is lower than the industry average. The legal and regulatory risk category accounts for 12.5% ​​of total risk compared to the industry average of 18.1%.

What is the price target for LYV?

On TipRanks, Live Nation has a Strong Buy consensus rating based on 15 unanimous “Buy” ratings over the last three months. Following a 15.7% increase in the LYV stock price over the last six months, analysts’ average price target for LYV stock of $121.15 per share implies a 19.48% upside potential.

Importantly, investors considering LYV stock could follow Citigroup’s lead (C) analyst Jason Bazinet. He is the top analyst covering equities (over a one-year horizon), with an average rate of return of 23.72% per rating and a success rate of 92%. Bazinet, who is among the top 1% of Street equity experts, reiterated his Buy rating on Live Nation stock on April 17. (To see Bazinet’s story, click here).

Disclosure