LiveXLive Eyes Strategic Opportunities; Street Sees 48% Upside

LiveXLive Media has announced that it is looking for potential strategic opportunities, including acquisitions, partnerships or other transactions, to grow its business.

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The digital media company has appointed J.P. Morgan as its financial advisor. However, it has not given any assurance that its efforts will materialize into any transaction. Shares rose 2.6% in Thursday’s pre-market session.

LiveXLive’s (LIVX) CEO Robert Ellin said, “We are continuing to look for transactions that are consistent with our acquisition strategy and our Board’s commitment to enhancing shareholder value.”

He added, “The opportunity is expanding to monetize the Company’s content multiple times and in multiple ways across numerous platforms, including carriers, automobiles, and OTT [over-the-top]. We continue to see immense opportunity for LiveXLive to leverage its audience, platform and artist and entertainment industry relationships and help drive further growth through our flywheel business model.”

On Nov. 16, the company reported lower-than-expected 2Q sales of $14.6 million, compared to the Street’s estimates of $16.7 million. The company posted a 2Q loss of $0.15 per share, while analysts had been looking for a loss of $0.12 per share.

Following the results, Maxim Group analyst Jack Vander Aarde lowered the stock’s price target to $4 (15.6% upside potential) from $5, but maintained a Buy rating. The analyst said, “In our view, the live music industry and LIVX specifically, will likely justify a premium multiple once the world returns to a normalized, pre-COVID environment, however, we remain uncertain as to when that will occur and therefore believe LIVX should trade at a slight discount to peers.”

Currently, most of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 4 unanimous Buys. Shares have rallied 124% year-to-date. Looking ahead, the average price target stands at $5.13 and implies additional upside potential of about 48.3% to current levels.