JPMorgan initiates StubHub stock with Overweight rating on market leadership

Published 13/10/2025, 08:56
JPMorgan initiates StubHub stock with Overweight rating on market leadership

Investing.com - JPMorgan initiated coverage on StubHub Holdings (NYSE:STUB) with an Overweight rating and a $24.00 price target on Monday. According to InvestingPro data, the stock is currently trading above its Fair Value, with shares up 11.64% over the past week.

The investment bank identified StubHub as the clear leader in the secondary ticketing market, noting the company is experiencing accelerating market share gains and benefits from strong network effects. The company maintains impressive gross profit margins of nearly 81% and has achieved 18.6% revenue growth over the last twelve months.

JPMorgan highlighted StubHub’s addressable market exceeds $194 billion, with the firm expecting meaningful revenue acceleration and profit improvement in 2026 driven by the company’s core resale business.

The bank also pointed to Direct Issuance and Advertising as new growth vectors that will expand StubHub’s total addressable market in the coming years.

JPMorgan believes StubHub shares currently trade at a discount to peers, offering a compelling risk/reward profile as the company’s asset-light model, high gross margins, and disciplined cost management are expected to drive multi-year margin expansion and free cash flow growth.

In other recent news, StubHub Holdings announced the pricing of its initial public offering at $23.50 per share, with plans to offer over 34 million shares of Class A common stock. The company is set to begin trading on the New York Stock Exchange under the symbol "STUB." In addition to this development, several analysts have initiated coverage on StubHub stock with positive ratings. BMO Capital started with an Outperform rating and a $30 price target, highlighting the company’s scale and market leadership in secondary ticketing. Evercore ISI also initiated coverage with an Outperform rating and a $29 price target, emphasizing StubHub’s dominant position in the market, processing $8.7 billion in gross merchandise sales. Moreover, Goldman Sachs provided a Buy rating with a $46 price target, citing the company’s favorable position in the growing ticketing market. These developments reflect a strong interest in StubHub’s market potential as it enters the public trading arena.

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