Morgan Stanley Starts StubHub Holdings (STUB) at Equalweight

Morgan Stanley analyst Cameron Mansson-Perrone initiates coverage on StubHub Holdings (NYSE: STUB) with a Equalweight rating and a price target of $8.25.

The analyst comments: "We initiate at EW with a $8.25 PT, implying healthy ~15% upside, but see a particularly wide risk/reward to shares over the next 12 months and risk to medium term consensus estimates. We note that StubHub shares have been pressured since going public in late-'25, and consensus has come down materially. Our PT implies shares trade at ~12.5x fwd. EBITDA (MS-defined) and ~14x fwd. FCF (fully-taxed), appropriate relative to comps given our growth expectations , and supported by our ~$8.30 DCF derived analysis .

Our outlook for StubHub's revenue and earnings growth in this report, underpinning our EW, is predicated on two considerations: 1. A constructive view toward industry growth in secondary ticketing and StubHub's ability to gradually grow share from here. 2. Balanced against a view that the secondary market remains fragmented and highly competitive, limiting take rate and the pace of sustained profitability improvement."

For an analyst ratings summary and ratings history on StubHub Holdings click here. For more ratings news on StubHub Holdings click here.

Shares of StubHub Holdings closed at $7.15 yesterday.

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