StubHub Shares Jump as Analysts Back Post-IPO Outlook
Shares of StubHub climbed nearly 6% in early trading on Monday, signaling a rebound in investor confidence after the company’s uneven market debut last month.
The surge follows a string of positive analyst endorsements, easing concerns that initially clouded the firm’s IPO performance.
Brokerages, including J.P. Morgan and BofA Global Research, have publicly praised StubHub’s position in the secondary ticketing market.
Experts highlighted the firm’s plans to expand into direct ticket sales and advertising, hinting at untapped growth potential.
Evercore ISI analysts noted, “StubHub’s dominance in secondary ticketing could facilitate its entry into the more extensive primary ticketing domain.”
Despite this optimism, shares are trading at $20, below the IPO price of $23.50, reflecting ongoing caution among investors wary of competition and future growth.
The stock’s trajectory differs sharply from recent tech IPOs like Klarna and Figma, where many entrants have struggled post-listing.
Live Nation remains one of the few competitors thriving in the public space, underlining the challenges in the live-event ticketing sector.
J.P. Morgan analysts see StubHub as undervalued relative to its peers, presenting a compelling risk/reward scenario.
Meanwhile, BMO labeled the company “a leader in the secondary ticketing sphere and a potential disruptor in the primary market,” setting a price target of $30. Notably, no brokerage has issued a neutral or negative rating since initiating coverage.
During its IPO, StubHub raised nearly $800 million, which will go towards trimming the company’s $2.4 billion debt.
The flotation marks a return to public markets after a turbulent period, including its 2020 acquisition by Viagogo for $4.05 billion and previous ownership under eBay.
Founded in 2000, StubHub operates across more than 200 countries, providing tickets for concerts, sports, and live events.
The IPO was coordinated by J.P. Morgan and Goldman Sachs, supported by a 14-firm underwriting syndicate.
Analysts suggest that StubHub’s strategic moves and market position could enable it to challenge established players in both secondary and primary ticketing.
The firm’s renewed momentum highlights a growing confidence in StubHub’s long-term growth trajectory, despite initial investor jitters post-IPO.
