In a report released yesterday, Maria Ripps from Canaccord Genuity downgraded Vivid Seats to a Hold, with a price target of $23.00.
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Maria Ripps’s rating is based on several factors impacting Vivid Seats’ current market position. The company reported a significant decline in its marketplace gross order value (GOV) during the second quarter, primarily due to intensified competition and broader consumer softness. This challenging environment has led to a reduction in revenue across various segments, including concerts, sports, and theater, with a notable impact from a key competitor’s increased marketing spend.
Despite some positive developments, such as international expansion and cost-saving initiatives, the near-term outlook remains uncertain. Vivid Seats has initiated a $25 million cost reduction plan to preserve unit economics, but the competitive intensity is expected to persist. While the stock’s valuation appears undemanding, the lack of immediate catalysts for growth has led Ripps to adopt a cautious stance, opting for a Hold rating until signs of stabilization and consistent revenue growth emerge.
In another report released yesterday, Craig-Hallum also downgraded the stock to a Hold with a $2.00 price target.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SEAT in relation to earlier this year.