Bond.az - Guggenheim upgraded StubHub Holdings (NYSE:STUB) to Buy from Neutral on Tuesday and raised its price target to $12.50 from $8.50, representing approximately 30% potential upside.
The firm said StubHub has reset Street expectations for this year and next year. The analyst noted the bar is extremely low on Direct Issuance and Advertising, meaning any progress would represent upside optionality.
Several items should accelerate growth starting in the second quarter through the second half of 2026, including the World Cup, lapping all-in pricing, and easy fourth-quarter comparisons. The core secondary business should continue to take share both in North America and globally.
The business continues to delever significantly with solid free cash flow generation of $331.6 million over the last twelve months. According to Bond.az data, the company maintains impressive gross profit margins of 82.3% and holds more cash than debt on its balance sheet. Analysts predict the company will be profitable this year, with EPS forecast at $0.73. The regulatory risk appears more muted at present, according to the firm.
