12:01 PM EDT, 09/04/2024 (MT Newswires) -- Live Nation (LYV) is well placed to deliver double-digit adjusted operating income, or AOI, growth in coming years, while risks from a potential break-up seem largely priced in, BofA Securities said in a note to clients Wednesday.

BofA initiated Live Nation with a buy rating and $125 price objective.

"We view [Live Nation] -- the global leader in live concerts and ticketing -- as an attractive opportunity to own a growth-oriented, live entertainment company benefiting from favorable trends," BofA said.

Live Nation is likely to see an 8% revenue compound annual growth rate, or CAGR, and a 12% adjusted operating income CAGR in the 2023 to 2027 period, the investment firm said.

BofA said a potential Ticketmaster break-up stemming from regulatory actions is "largely priced in."

"We believe that standalone Ticketmaster would trade at ~12.5x AOI while a standalone Live Nation would command ~14x," the note said. "Though growth would potentially be slightly impeded, we believe it would still be solid for both entities, if separated, given robust fundamentals and numerous tailwinds."

Price: 95.46, Change: +0.12, Percent Change: +0.13