Analyst Upgrades LYV on Promising Future for Concerts

The security is already up over 90% year-over-year

Digital Content Manager
May 10, 2021 at 10:41 AM
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The shares of event promoter and venue operator Live Nation Entertainment, Inc. (NYSE:LYV) are up 3.5% at $82.75 this morning, after the company earned an upgrade from Jefferies to "buy" from "hold," as well as a price-target hike to $96 from $88. The brokerage firm noted it expects an "epically strong year for concerts" in 2022, as more Americans get the Covid-19 vaccine and states lift restrictions for indoor and outdoor gatherings.

The security has been trending lower since reaching a March 3, all-time high of $94.63. Today's pop had the shares running up to the previously supportive 80-day moving average, though the region looks to be maintaining its status as an area of resistance over the past week. Year-over-year, LYV is up 92.9%.

Analysts were mostly hesitant towards Live Nation Entertainment stock coming into today, with five of the nine in question carrying a tepid "hold" rating, while four said "strong buy." Meanwhile, the 12-month consensus price target of $87.30 is a 5.6% premium to current levels.

Short sellers have been building their positions, too. Short interest is up 3.1% in the last two reporting periods, and the 13.26 million shares sold short currently make up 9% of the stock's available float, or over a week's worth of pent-up buying power, at LYV's average pace of daily trading.

The security's usually quiet option pits are brimming with bullish activity today. So far, 13,000 calls have already crossed the tape, which is 29 times the intraday average. Most popular is the June 80 call -- where new positions are being opened -- followed by the May 77.50 call.

These option traders are in luck, as LYV options are affordably priced at the moment. The equity's Schaeffer's Volatility Index (SVI) of 35% sits in the low 1st percentile of its annual range, indicating options players are now pricing in low volatility expectations.

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