Vivid reporting similar to Integral Ad Science, says Raymond James

Raymond James keeps an Outperform rating on Vivid Seats (SEAT) with a $5 price target after Bloomberg reported the company is exploring a sale process after fielding inbound takeover interest. Details are “thin,” but the interest is reportedly coming from private equity firms rather than strategic buyers, the analyst tells investors in a research note. The firm says the news is reminiscent of a similar report involving Integral Ad Science (IAS) in late October. Raymond James says both stocks have struggled to break out after their initial public offering, both companies have reportedly fielded interest from financial sponsors, both already have significant financial sponsor ownership, and both have particular reasons why strategic buyers would not be likely candidates. It points out there has been no movement on the Integral Ad process since the initial reporting, which means that today’s Vivid headlines “are not necessarily the final word.”