Ahead of the Bell: Analyst upgrades Ticketmaster

Ticketmaster, which spun off from Barry Diller's IAC/InteractiveCorp in August, is still the market's leading player and remains compelling because it does not compete with its clients, according to Stifel Nicolaus & Co.'s Scott Devitt.

Investors sent the West Hollywood, Calif., company's stock to a fresh 52-week low earlier this month on news of Live Nation Inc.'s ticketing agreement with SMG, the world's largest venue management company. But Devitt said his talks with Ticketmaster suggest that the deal will have less of an impact on Ticketmaster's business than previously thought.

The analyst also recommended investors buy the stock, which has dropped 57 percent since its spinoff from IAC/InteractiveCorp.

"We think Ticketmaster has some issues but that it is also a sustainable and profitable ongoing entity and, as such, believe value-oriented investors should begin to accumulate positions at current levels," he wrote in a client note.

Devitt lifted his rating to "Buy" from "Hold" and gave a $14 price target.

Shares closed Friday at $10.74.