Analyst Note| Neil Macker |
Narrow-moat Live Nation started off 2023 with a strong first quarter buoyed by all of the firm's markets being open for the first time since the pandemic. Management continues to tout the strength of 2023 demand, with over 90 million tickets sold to date for shows, tracking 20% ahead of 2022 at the same point. Despite the relatively weak global ad market, over 80% of the planned sponsorship for 2023 is already booked. We are maintaining our fair value estimate of $105. While shares are trading at a discount, the headline risks for Live Nation remain high as the recent ticketing snafus and fee increases have bolstered the demand for increased regulatory oversight in the United States and other countries.