S&P Global Ratings has downgraded Live Nation's outlook to negative following the Department of Justice's antitrust lawsuit targeting the company's ownership of Ticketmaster. The credit rating agency cites potential threats to Live Nation's business model and competitive position in the live events industry.

Key Points:

• S&P maintains Live Nation's credit ratings but shifts outlook from stable to negative
• Management and governance score adjusted from neutral to moderately negative
• DOJ lawsuit seeks to force Live Nation to divest Ticketmaster
• Agency views Ticketmaster as a core component of Live Nation's competitive advantage

Despite the outlook downgrade, Live Nation's market performance remains strong:

• Stock trading around $93.50 per share
• Up from start of 2024
• 17% increase from May 2023

Analyst Perspectives:

• Roth MKM analyst Eric Handler maintains buy rating with $120 target price
• Handler believes forced separation of Live Nation and Ticketmaster unlikely to succeed
• Company willing to discuss remedies deemed non-transformative to business
• Allegations of monopolistic behavior considered difficult to prove

The company maintains its intention to vigorously defend against the lawsuit while expressing openness to discussing potential remedies that would not fundamentally alter its business structure.

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