Vivid Seats Inc
Vivid Seats Inc. (NASDAQ: SEAT): Vivid Seats Inc., formerly Horizon Acquisition Corp, is a marketplace that allows fans of live events to connect with third-party ticket sellers through its technology platform. The Company operates through two segments: marketplace and resale. Its marketplace segment acts as an intermediary between ticket buyers and third-party ticket sellers. It facilitates the sale of tickets by third-party ticket sellers through its Website www.vividseats.com and Vivid Seats native applications.
Valuation Methodology: Price/Earnings Per-share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
On daily price chart, a positive RSI range shift spotted where 14-day RSI moved above 40, and stock has recorded a reversal from short-term suppost of 8.3 and moving towards its 21-day SMA.
Further, we have valued the stock using the Price/Earnings per share based on relative valuation methodology and arrived at a target price of USD 10.9. The current price of USD 8.92 is still showing a lot of room is left for the stock to be carried forward towards its target. But we would like to see the stock settle sometime before it takes off and ride it towards our profit target. Considering the improving financials and the acquisition impact, we recommend a "Speculative Buy" rating on the stock at the closing price of USD 9.10 as of February 07,2022.
1-Year Technical Price Chart (as onFebruary 07, 2022). Source: REFINITIV, Analysis by Kalkine Group
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.