Analyst Curtis Nagle from Bank of America Securities maintained a Sell rating on Vivid Seats (SEAT – Research Report) and keeping the price target at $2.60.
Curtis Nagle has given his Sell rating due to a combination of factors impacting Vivid Seats. A significant concern is the recent Executive Order aimed at curbing unfair ticketing practices, which could potentially reduce the liquidity on secondary marketplaces like Vivid Seats. This order seeks to enhance competition by limiting bulk ticket acquisitions, which might restrict the volume of transactions on platforms such as Vivid Seats, affecting their role as a liquidity provider for both consumers and content rights holders.
Additionally, while Vivid Seats’ fees are competitive within the industry, the increased focus on pricing transparency could pressure the company’s Gross Order Value (GOV) trends. The Executive Order appears to target professional sellers, who constitute a large portion of the market, potentially leading to a reduction in prices or transaction volumes. This regulatory environment, coupled with an already challenging year, contributes to the cautious outlook, prompting the maintenance of an Underperform rating.
SEAT’s price has also changed moderately for the past six months – from $3.860 to $2.890, which is a -25.13% drop .