Barclays starts CTS Eventim with 'overweight' on structural growth, deep moats

** Barclays initiates coverage on German live-ticketing company CTS Eventim, EVD rating it "overweight," saying the company offers an attractive combination of structural growth and competitive advantage

** It sees live events to be a structurally growing market, as artists derive greater share of income from touring and demand far exceeds supply

** In its view CTS Eventim's shift to mobile ticketing offers higher margins, and estimates an incremental EBITDA of about EUR 1.10 per ticket to contribute to further margin expansion

** Barclays expects group adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow about 13% annually over the next three years

** The brokerage says the company's stock has the potential to double over five years, with management having many levers to continue outgrowing the market while driving margin expansion

** Out of 16 analysts that cover CTS Eventim, 11 rate the stock "strong buy" or "buy,"​ four rate it "hold" and one rates the stock "sell"