Craig-Hallum downgrades Vivid Seats as headwinds continue to worsen

As previously reported, Craig-Hallum downgraded Vivid Seats (SEAT) to Hold from Buy with a price target of $2, down from $2.50. While the firm continues to believe normalized earnings power is “significantly higher,” it says that consumer softness, intense competition, and challenging user acquisition dynamics “combine to create a very difficult operating environment” and that the magnitude and duration of the fundamental deterioration “continues to be worse than we had feared.” The firm is moving to the sidelines as it doesn’t see a fundamental or business catalyst over the next year, the analyst tells investors.