Doug Anmuth, an analyst from J.P. Morgan, has initiated a new Buy rating on StubHub Holdings Incorporation Class A (STUB).
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Doug Anmuth has given his Buy rating due to a combination of factors including StubHub’s leading position in the secondary ticketing market and its potential for significant revenue growth and profit improvement by 2026. The company’s core resale operations are expected to drive revenue acceleration, while new growth avenues such as Direct Issuance and Advertising are anticipated to expand the total addressable market and enhance profitability.
StubHub’s asset-light business model, coupled with high gross margins and disciplined cost management, is projected to support multi-year margin expansion and strong free cash flow. Despite potential industry headwinds and regulatory challenges, StubHub’s scale, brand strength, and technology-driven platform are expected to help it navigate these issues effectively. The stock is currently trading at a discount compared to its peers, offering an attractive risk/reward profile, with a price target set at $24 by December 2026.
In another report released today, BMO Capital also initiated coverage with a Buy rating on the stock with a $30.00 price target.