Shares of Eventbrite Inc (NYSE:EB) spiked in early trading on Thursday, ahead of the release of the company’s quarterly report next week.
With operational improvements, the company is heading toward a margin inflection, according to KeyBanc Capital Markets.
The Eventbrite Analyst: Justin Patterson upgraded the rating for Eventbrite from Sector Weight to Overweight, while keeping the price target unchanged at $14.
The Eventbrite Thesis: The scaling of demand generation products “creates a flywheel” that supports more than 20% of the company’s annual revenue growth through 2025 and “meaningful margin expansion,” Patterson said in the upgrade note.
Check out other analyst stock ratings.
“In mid-June, Eventbrite disclosed its Boost and Ad products had reached an $11M annualized revenue run rate, up from $8M in 1Q23 and $6M in 4Q22,” the analyst wrote. As this product scales, it will benefit the company’s ticket volumes, take rate, and margins, he added.
“Given the scarcity of SMID-cap Internet businesses with product catalysts, 20%+ growth, a path to 20% margins, and no major competitive threats, we find risk/reward attractive,” Patterson wrote.
EB Price Action: Shares of Eventbrite had risen by 8.26% to $10.62 at the time of publication Thursday.
Next: Lam Research Poised For ‘Solid Start To The Year’ As 3 Analysts Discuss Q4 Print
