Two other promoters, The Madison Square Garden Company and CTS Eventim, improved 9.6% and 24.6%, respectively, to their highest closing prices since March 11.
Live event promoters have plenty to cheer about -- within reason. Citi analyst Jason Bazinet upgraded Live Nation’s stock from “sell” to “neutral” while keeping a $35 price target that’s 22.7% below Tuesday’s closing price . But liquidity might not be a problem: both Bazinet and Lightshed Partners analysts have argued Live Nation has enough cash and credit to meet short-term obligations.
Entertainment companies could benefit from a federal bailout of the U.S. airline industry that aids tourism to destination festivals like Coachella and Bonnaroo; the hotel industry has also asked President Trump for help. But the deciding factor in live event promoters’ valuation is the COVID-19’s duration and effect on North America and Europe’s economies. McKinsey had forecasted new cases in Europe and the U.S. to peak in mid-April and that their economies will recover in the fourth quarter.
Goldman Sachs forecasted a 25% decline in the U.S. gross domestic product in the second quarter. Deutsche Bank puts GDP contractions at 24% and 13% for Europe and the U.S., respectively. But the stimulus package is the deciding factor here. On Tuesday, investors felt better about the future global economy than last week. The trillion-dollar question is how the federal government carries the country out of a recession.
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Source: CNBC - 🏆 12. / 72 Read more »