J.P. Morgan analyst Dae Lee has maintained their neutral stance on EB stock, giving a Hold rating today.
Dae Lee has given his Hold rating due to a combination of factors impacting Eventbrite’s financial outlook. The company’s fourth-quarter revenue was in line with expectations, but the adjusted EBITDA fell short, indicating some challenges in profitability. Despite this, Eventbrite’s projected EBITDA margin for 2024 exceeded its target, suggesting some positive operational efficiencies.
However, the revenue guidance for the first quarter was lower than anticipated, hinting at a potential decline in year-over-year revenue growth. While there are signs of improvement expected in 2025, including a return to growth by the fourth quarter, the removal of the high-margin organizer fee poses a challenge to maintaining margins. The company is also undergoing a transition period, with reduced revenue and EBITDA projections for 2025 and 2026. Given these mixed signals, Dae Lee remains cautious, maintaining a Neutral stance on Eventbrite’s stock until more consistent growth and margin improvements are evident.
According to TipRanks, Lee is a 3-star analyst with an average return of 9.7% and a 56.52% success rate.
In another report released today, B.Riley Financial also downgraded the stock to a Hold with a $3.50 price target.