On Wednesday, Barclays began coverage on CTS (NYSE:CTS) Eventim (EVD:GR), a dominant player in the European live events ticketing industry, assigning an Overweight rating and setting a price target of EUR130.00. The firm’s analyst highlighted CTS Eventim’s commanding market presence, particularly in the DACH region and Italy, where it holds over 70% market share.
CTS Eventim’s robust position in the market is attributed to a combination of structural growth and significant competitive barriers. The live music sector is experiencing a surge, propelled by both increased attendance and rising ticket prices. CTS Eventim has consistently outperformed the market growth rates while also achieving steady margin improvements.
Barclays projects a group revenue compound annual growth rate (CAGR) of approximately 9%, with a breakdown of around 7% for Live Entertainment and approximately 13% for Ticketing. Additionally, the group’s adjusted EBITDA is expected to see a CAGR of around 13% over the next three years. This growth trajectory places CTS Eventim at 15.7 times its estimated 2025 earnings, compared to Universal Music Group (AS:UMG)’s 10% growth at 18.9 times earnings.
The positive outlook from Barclays is based on CTS Eventim’s ability to continue its growth pattern, capitalizing on the booming live music industry. The firm’s analysis suggests that CTS Eventim is well-positioned to maintain its market leadership and financial performance, translating into an attractive investment profile.
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