UBS on Tuesday reiterated a Buy rating for Live Nation Entertainment (NYSE:LYV) and left its price target at $164.00 - a level the bank says implies about an 8% upside from the stock's trading price of $151.38. UBS's stance aligns with InvestingPro data that classifies the stock as slightly undervalued on a Fair Value basis.
In research notes, UBS analyst Batya Levi described Live Nation as having delivered a "solid finish to the year" across its Concerts and Sponsorship operations. The analyst also said that proactive measures taken within the Ticketing business have temporarily paused segment-level adjusted operating income (AOI) growth.
Even with the short-term interruption in Ticketing AOI expansion, UBS emphasized that Live Nation's overall AOI growth stayed in the double digits. The company reported $24.57 billion in revenue over the last twelve months, representing 5.48% growth versus the prior period.
Looking ahead, UBS expects an uplift in ticket sales activity to support nearly 20% growth in the Concerts segment in 2026, noting that this projection takes into account "the world cup factor this summer." UBS's research points to a significant lineup of events scheduled at high-capacity venues both in the U.S. and abroad, and the firm highlighted that roughly 90% of stadium events are already booked.
The analyst also reported progress on Live Nation's plan to open about 20 new owned and operated venues by the end of 2026. UBS believes that the venue expansion will contribute a mid-single-digit percentage or higher increase in fan counts.
Investors should be aware of several valuation and timing considerations. InvestingPro notes that Live Nation currently trades at a high earnings multiple, with a price-to-earnings ratio of 109.73, suggesting that lofty growth expectations are already reflected in the share price. The company is scheduled to release its next earnings report in nine days, an event UBS and other market participants expect to clarify the near-term trajectory.
Live Nation's outlook is also being shaped by significant external developments. The U.S. Department of Justice has urged a federal court to order the breakup of Live Nation, alleging monopolistic conduct. According to the DOJ, Ticketmaster has punished venues that selected rival ticketing services, a practice the agency says resulted in an average loss of about five concerts per year for affected venues and a combined revenue shortfall of roughly $1.5 million.
Analyst coverage around the stock has been mixed. Jefferies moved its rating from Buy to Hold, citing concerns about the company's growth prospects, particularly in North America for fiscal 2026. In contrast, Evercore ISI increased its price target to $188 and maintained an Outperform rating, pointing to expectations for AOI growth and sustained demand for live events. Bernstein also reiterated an Outperform rating with a $185 target, expressing optimism even as the company deals with issues in fan attendance and within the Ticketmaster division.
Taken together, UBS's maintained Buy call and $164 target sit alongside divergent views from other brokerages and significant legal risk from the DOJ action. The company faces a near-term earnings report that may provide additional clarity on the pace of recovery across Ticketing and the durability of Concerts momentum.
Market participants will be watching whether booked stadium events, venue openings and ticket sale trends translate into the top- and bottom-line improvements underwriters expect, while legal and valuation questions remain material to investor assessments.