Eventbrite (EB – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Cameron Mansson-Perrone from Morgan Stanley maintained a Hold rating on the stock and has a $3.40 price target.
Cameron Mansson-Perrone’s rating is based on several challenges that Eventbrite is currently facing. The company is dealing with the aftermath of its decision to charge all event creators a fee, which it later reversed. This has led to a reduced number of creators on the platform and a decline in paid ticket volumes. Additionally, the absence of organizer fee revenue is exerting short-term financial pressure.
While Eventbrite has made efforts to attract creators back, the path to regaining its previous growth trajectory is uncertain and expected to take time. The company’s guidance for fiscal year 2025 indicates a revenue decline of 4-9% year-over-year, which is slower than previously anticipated. This slower recovery is reflected in the lower revenue and margin expectations, prompting the Hold rating as the company navigates these transitional challenges.
In another report released today, B.Riley Financial also downgraded the stock to a Hold with a $3.50 price target.