Analyst Note| Neil Macker, CFA |
Fourth quarter results at Live Nation were once again predictably down severely as revenue collapsed 92% due to the ongoing lockdown restrictions in almost all the firm’s major markets. With the beginning of widespread vaccinations, management remains focused on summer 2021 as the timeline for a “return to scale” for concerts and festivals. The company is not interested in holding concerts with severe capacity constraints such as the current 10% limit in New York City. Rather, Live Nation is waiting for limits that allow at 50% capacity or more. We maintain our narrow moat and plan to raise of $50 FVE when we update our model.