AlsterResearch AG Update: CTS Eventim AG - Pent-up demand or couch potato habit?

CTS Eventim AG (Update)   Media MCap EUR 6.4bn SELL (from HOLD) PT EUR 55.00 (-18% potential)   We are downgrading CTS as we see the risk that the growth trajectory might be overstated. A quick data point of analysing Bundesliga attendance supports our view.   Read

What’s it all about?

Analysing the attendance of the Bundesliga, we deduce that expectations of a steep and broad-based recovery for live events may be overblown and a return to pre-crisis levels might take longer than expected. CTS is doing its homework and focusing on strict cost management, efficiency gains and liquidity protection to emerge stronger from the crisis. Considering the ambitious valuation and potential for short-term disappointment from end-markets, we downgrade to SELL with unchanged estimates and PT.