Live Nation Stock: A Smart Buy Despite Recent Slump?

Live Nation Entertainment has caught the attention of Deutsche Bank, which remains optimistic about its prospects. The bank has kept its buy rating on the stock, although it has slightly lowered its price target from $173 to $160 per share. This new target still suggests a potential upside of around 23%. The stock has not performed well this year, with gains of less than 1%. It has dropped by 25% since its peak in September. Analyst Benjamin Soff believes this decline is excessive and presents a good opportunity for investors to buy. Live Nation is currently trading at 15. 4 times the estimated adjusted operating income for 2026. Soff argues that this valuation is low considering the company's expected sustainable double-digit growth in the foreseeable future. Soff is also positive about Live Nation's concert business next year. He forecasts growth in various regions and venues. The company aims to increase its total fan base to 225 million, up from 200 million, driven by its expansion into international markets. New venue constructions could significantly boost Live Nation's margins and adjusted operating income. Soff highlights that the company has a pipeline of 48 large venue builds, which could attract 22 million new fans by 2029 and 29 million by 2031. This is an increase from the 35 large venues and 20 million fans projected last year.