Vivid Seats Earns ‘Buy’ Rating on Strong Q1 Performance and Strategic Growth Initiatives

Canaccord Genuity analyst Maria Ripps has maintained their bullish stance on SEAT stock, giving a Buy rating today.

Maria Ripps has given her Buy rating due to a combination of factors including Vivid Seats’s strong performance in the first quarter and the company’s strategic initiatives. Vivid Seats surpassed expectations in Q1, demonstrating robust demand in the live event sector, which was bolstered by high-profile sporting events. The company’s year-over-year growth was notable despite a competitive marketplace. Additionally, Ripps highlighted the company’s progress towards international expansion and the integration of Vegas.com, which is expected to contribute to future revenue growth without being factored into the current year’s guidance, suggesting a conservative and potentially undervalued outlook.
Furthermore, Ripps’s confidence in Vivid Seats is reinforced by the company’s solid financial discipline, as evidenced by its free cash flow generation and share repurchases. Strategic moves such as becoming the exclusive ticket provider for the upcoming College Basketball Crown tournament and the anticipation of double-digit year-over-year growth and EBITDA margin expansion in the years ahead further bolster the company’s prospects. Despite short-term pressures, the company’s shares are seen as trading at a discount, presenting an attractive entry point for investors. Ripps’s revised price target, while lower than before, is still supported by a disciplined discounted cash flow valuation and a price-to-sales multiple that acknowledges the groundwork being laid for future growth.

In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $15.00 price target.

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Vivid Seats (SEAT) Company Description:

Horizon Acquisition Corp is a blank check company.