Vivid Seats Inc. (SEAT) PT Lowered to $10 at Benchmark

Benchmark analyst Daniel Kurnos lowered the price target on Vivid Seats Inc. (NASDAQ: SEAT) to $10.00 (from $15.00) while maintaining a Buy rating.

The analyst commented: "It has been a challenging 2024 for Vivid Seats (SEAT: Buy, PT from $15 to $10), and unfortunately, our checks suggest 3Q is unlikely to provide any relief. After a tough start to the year following another secondary and a $10 million investment in international that, while necessary, got a lukewarm reception, Vivid now faces not only a really tough comparison with Taylor Swift and Beyonce but also several cancellations, a negative venue and talent mix shift, and questions around the health of the consumer. To be clear, we expect the entire group to experience incremental pressure in the near-term, although the previous tailwind in secondary ticket market pricing is likely to turn into a greater headwind than that experienced in the primary market. The knock-on effect, however, is that Vivid’s top 2 competitors are likely going to find it even harder to come to market, reducing the chance for a positive valuation comparison catalyst while also keeping up incremental competitive pressure. We have taken our forecast to the very bottom of the prior guidance range in an attempt to capture all the moving pieces but still find that Vivid trades at less than 7x our 2025E EBITDA, suggesting an artificially depressed EBITDA due a combination of market forces and the ongoing shareholder overhang."

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