StubHub stock initiated with Market Outperform rating by Citizens

Investing.com - Citizens has initiated coverage on StubHub Holdings (NYSE:STUB) with a Market Outperform rating and a $24.00 price target on Monday, representing potential upside from the current price of $18.89.

The firm identifies StubHub as the leading North American marketplace for resold tickets, with emerging business lines in sponsored listings and direct issuance that could contribute to future growth.

Citizens highlights StubHub’s high incremental margins, estimated at approximately 85% for direct and repeat ticket buyers, suggesting the company could achieve 30%+ EBITDA margins in the coming years.

The research note points to North America hosting the 2026 World Cup as a significant macro tailwind that reduces risk to the firm’s 2026 resale GMS estimates for StubHub.

Citizens views StubHub’s current valuation as reasonable at 14.5x their 2027 bear case EBITDA estimate, citing beatable near-term estimates, the World Cup opportunity, strong unit economics, and consolidating market leadership as factors supporting a positive risk/reward outlook.

In other recent news, StubHub Holdings has made significant moves in the financial market. The company announced the pricing of its initial public offering at $23.50 per share, planning to offer over 34 million shares of Class A common stock. This development marks StubHub’s entry into public trading on the New York Stock Exchange. Meanwhile, several investment firms have initiated coverage on StubHub stock, reflecting confidence in the company’s market position. JPMorgan rated StubHub as Overweight with a price target of $24.00, highlighting its leadership in the secondary ticketing market. BMO Capital gave the stock an Outperform rating and set a target of $30.00, citing its competitive advantages. Evercore ISI also rated StubHub as Outperform with a $29.00 price target, emphasizing the company’s substantial gross merchandise sales. Additionally, Goldman Sachs initiated coverage with a Buy rating and a higher price target of $46.00, noting the growing consumer trend towards experiences over products. These analyst ratings underscore the positive outlook on StubHub’s market potential.

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