Vivid Seats, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Daniel Kurnos from Benchmark Co. maintained a Buy rating on the stock and has a $26.00 price target.
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Daniel Kurnos has given his Buy rating due to a combination of factors that suggest potential long-term recovery for Vivid Seats. Despite the current challenges, including a competitive onslaught from Stubhub and a tough event landscape, Kurnos believes that Vivid Seats has the resilience to withstand these pressures. He views Stubhub’s aggressive spending as unsustainable, predicting that eventually, market dynamics will force Stubhub to rationalize its expenses, benefiting Vivid Seats in the long run.
In the short term, while Vivid Seats’ recent financial performance has been underwhelming, Kurnos sees this as a temporary setback. The company’s revenue and EBITDA have fallen short of expectations, but Kurnos anticipates that strategic cost-saving measures will help stabilize the business. He acknowledges the challenges ahead, including potential declines in gross order value, but remains optimistic about the company’s ability to navigate these difficulties and eventually recover its growth and valuation.
Kurnos covers the Communication Services sector, focusing on stocks such as Roku, Angi, and Paramount Global. According to TipRanks, Kurnos has an average return of 6.5% and a 50.84% success rate on recommended stocks.