Vivid Seats (SEAT – Research Report), 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 $6.00 price target.
Daniel Kurnos has given his Buy rating due to a combination of factors that suggest potential upside for Vivid Seats. Despite facing a challenging market environment and a significant drop in share price following the company’s guidance, Vivid Seats has demonstrated resilience. The company ended the year with a strong quarter, surpassing expectations in both revenue and EBITDA, even though these expectations were lowered. The stock’s valuation appears attractive, trading at under 6x EV/EBITDA, and the company has a substantial amount of cash and cash flow to navigate the competitive landscape.
Moreover, Vivid Seats has a $77 million share repurchase authorization, which, combined with potential free cash flow, indicates a favorable risk-reward scenario. The competitive pressures from other market players could potentially ease, benefiting Vivid Seats in the long run. While the forward outlook appears challenging, particularly in the first half of 2025, the company is expected to leverage its buyback strategy and wait for industry consolidation and macroeconomic stabilization, which could ultimately lead to improved performance.
Kurnos covers the Communication Services sector, focusing on stocks such as Magnite, IAC/InteractiveCorp., and Cineverse. According to TipRanks, Kurnos has an average return of 1.4% and a 45.82% success rate on recommended stocks.