US$137 - That's What Analysts Think Live Nation Entertainment, Inc. (NYSE:LYV) Is Worth After These Results

It's been a good week for Live Nation Entertainment, Inc. (NYSE:LYV) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to US$129. Results look mixed - while revenue fell marginally short of analyst estimates at US$7.7b, statutory earnings beat expectations 3.9%, with Live Nation Entertainment reporting profits of US$1.66 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Live Nation Entertainment

Taking into account the latest results, the current consensus from Live Nation Entertainment's 22 analysts is for revenues of US$26.7b in 2025. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 197% to US$2.66. Before this earnings report, the analysts had been forecasting revenues of US$26.6b and earnings per share (EPS) of US$2.49 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 10% to US$137. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Live Nation Entertainment analyst has a price target of US$155 per share, while the most pessimistic values it at US$95.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Live Nation Entertainment's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% annually. Even after the forecast slowdown in growth, it seems obvious that Live Nation Entertainment is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Live Nation Entertainment's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Live Nation Entertainment going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Live Nation Entertainment that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.