Roth MKM starts Live Nation at Neutral amid economic pressure in near term

As reported yesterday evening, Roth MKM analyst Eric Handler initiated coverage of Live Nation with a Neutral rating and $72 price target. The analyst notes that the positive secular tailwinds in live events and a long runway for global growth should fuel a 10%-CAGR for operating income over the next four years, generating more than $4B in free cash flow for the company. The firm warns however that in the near term, capital appreciation for the shares appears limited given its concerns about economic pressures weighing on consumer spending in the latter part of 2023 and the perceived overhang of government interference.