Buy Live Nation on strong growth, JPMorgan says
Investors should buy Live Nation shares on the prospect of strong profit growth ahead from its concert ticketing business, according to JPMorgan, which initiated coverage on the company with an overweight rating. "A global leader in live entertainment, ticketing and talent management services, we see Live Nation as a multiyear free cash flow growth story," analyst David Karnovsky wrote in a note to clients Thursday. "The company has a dominant position across the concert value chain creating high barriers to entry, and attractively operates in a media niche without risk of disintermediation, giving us a high degree of confidence in our higher-than-consensus financial outlook." Karnovsky's Live Nation price target is $34, representing 29 percent upside from Wednesday's close. He cited how the concert business has grown at a 10 percent annual rate for the last 20 years. Live Nation dominates the market with four times the attendance of its nearest competitor, with 63 million concertgoers in 2015. As a result of his strong confidence in continued growth, Karnovsky forecasts Live Nation's profit will growth at a double-digit rate the next three years. "Global concert demand is growing, and we expect Live Nation to continue expansion abroad. International demand for concerts is increasing, driven by social media and online video, rising incomes and improved infrastructure," he wrote.

Live Nation CEO Michael Rapino. Scott Mlyn | CNBC