LiveOne price target lowered to $1.50 from $3.50 at Alliance Global

Alliance Global Partners analyst Brian Kinstlinger lowered the firm’s price target on LiveOne (LVO) to $1.50 from $3.50 and keeps a Buy rating on the shares. Tesla (TSLA) will no longer subsidize LiveOne’s digital radio for new car sales or existing cars in North America besides some cars that are grandfathered in for perpetuity, the analyst tells investors in a research note. The firm says that during Q1, Tesla represented 53% of LiveOne’s total revenue or about $17.5M. Alliance expects that as of December 1, there will be a few hundred thousand paid subscribers from 1.9M and that converting the Tesla listeners to paid subscribers will be the primary driver of a turnaround. Moving from what was a free service to adding a new monthly charge for consumers will be a difficult sell for LiveOne, the analyst tells investors in a research note.