Home / Start Ups / Investors / Live Nation Stock Extends Rally After Citi Upgrade

Live Nation Stock Extends Rally After Citi Upgrade

Live Nation Entertainment, Inc. (LYV) shares rose more than 13% during Tuesday’s session after Citi upgraded the stock from Sell to Neutral with a price target of $35.00, although that price target reflects a 17% discount to the current market price. Investors are also looking at cues that life is returning to normal in China where COVID-19 first hit.

Analyst Jason Bazinet acknowledges that COVID-19 will adversely affect the entertainment business, but after Live Nation stock fell about 50%, the impact may already be priced into the shares. He believes that the stock is becoming “increasingly attractive” and has enough liquidity to tackle a roughly 90% decline in revenue this year – although the company is estimating only a 70% drop.

The move comes shortly after insiders and billionaire investor Mark Cuban disclosed purchasing shares. CEO Michael Rapino purchased 25,600 shares at $38.98 apiece, and board member Ping Fu picked up $85,000 worth of stock at $42.50 over the past couple of weeks. Mark Cuban said that he has been a buyer of Live Nation as well as Twitter, Inc. (TWTR) in recent weeks.

TrendSpider

From a technical standpoint, Live Nation stock continued to rebound from reaction lows made last week. The relative strength index (RSI) rose toward neutral levels with a reading of 42.00, while the moving average convergence divergence (MACD) could see a near-term bullish crossover. These indicators suggest that the stock has more room to run higher.

Traders should watch for a breakout from Fibonacci retracement levels of $42.46 toward the next Fibonacci retracement level of $55.29 over the intermediate term. If the stock fails to break out, traders could see a move lower to retest Fibonacci support levels at $34.53 or lows of around $21.70.

The author holds no position in the stock(s) mentioned except through passively managed index funds.

Source link

About Amy Harvey

Amy R. Harvey writes forStartUps Sections In AmericaRichest.

Check Also

Tier 1 Capital vs. Tier 2 Capital: What’s the Difference?

Under the Basel Accord, a bank has to maintain a certain level of cash or …

Leave a Reply

Your email address will not be published. Required fields are marked *