Analyst Dae Lee of J.P. Morgan maintained a Hold rating on Eventbrite (EB – Research Report), with a price target of $7.00.
Dae Lee’s rating is based on a combination of near-term challenges and longer-term prospects for Eventbrite (EB). The company’s recent implementation of an organizer fee has led to a greater-than-anticipated negative impact on paid ticket volumes, with a year-over-year decrease in the fourth quarter. Despite this, revenue managed to align with projections due to increased pricing and advertising revenue. While management anticipates an improvement in ticket volume trends throughout the year, the immediate outlook indicates a further decline. Additionally, the company is not expected to achieve the previously targeted 20% adjusted EBITDA margin within this fiscal year but is aiming for a low to mid-teens percentage instead. These factors contribute to the Hold rating, reflecting a cautious stance until Eventbrite demonstrates a return to its target revenue growth and margin benchmarks.
Furthermore, Lee acknowledges the potential for Eventbrite’s new marketing tools to drive positive results for event creators and the transition towards a two-sided marketplace could foster long-term value. However, due to the soft fourth quarter results and a 2024 outlook that falls below expectations, he advises a neutral position. The report suggests that while the current headwinds are considered temporary, successful execution in the upcoming quarters is essential for the company to recover and achieve its long-term objectives of 20%+ revenue growth and adjusted EBITDA margins. Lee maintains a Neutral rating with a December 2024 price target of $7, which is based on approximately 12 times the estimated adjusted EBITDA for 2025.
Lee covers the Real Estate sector, focusing on stocks such as Redfin, Opendoor Technologies, and Offerpad Solutions. According to TipRanks, Lee has an average return of 4.6% and a 60.00% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $9.00 price target.
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Eventbrite (EB) Company Description:
Eventbrite, Inc. provides event management services encompassing online ticketing, event hosting, organization, promotion and advertising. The company was founded by Alan Michael Braverman, Renaud Visage, Kevin E. Hartz and Julia Hartz in 2006 and is headquartered in San Francisco, CA.
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