Key insights
- Morgan Stanley raised its price target on StubHub to $8.75, citing progress toward 2026 earnings inflection. Goldman Sachs also raised its target to $16.00, highlighting improved market share and resilient demand. StubHub reiterated its full-year 2026 guidance. The stock appears slightly undervalued. Overall, analyst sentiment is cautiously optimistic, but the impact on the broader US market is minimal.
Investing.com - Morgan Stanley raised its price target on StubHub Holdings (NYSE:STUB) to $8.75 from $8.25 while maintaining an Equalweight rating on the shares.
The firm cited StubHub’s first-quarter results as progress toward delivering on reiterated guidance for earnings inflection in fiscal year 2026.
The company reported gross merchandise sales and revenue growth of 7% and 12% year-over-year, respectively. Morgan Stanley expects growth to improve in the second half of the year. Despite current losses, StubHub maintains an impressive gross profit margin of 82%, according to InvestingPro data, while analysts forecast the company will turn profitable in fiscal 2026.
The firm said it remains less confident in earnings achievability in 2027 and beyond.
Morgan Stanley said the valuation appears largely appropriate at current levels. InvestingPro analysis suggests the stock is slightly undervalued at its current price of $7.52, positioning it among opportunities on the platform’s most undervalued stocks list. For deeper insights, investors can access StubHub’s comprehensive Pro Research Report, one of 1,400+ available reports transforming complex data into actionable intelligence.
In other recent news, StubHub’s first-quarter 2026 earnings report showcased a mixed financial performance. The company reported earnings per share (EPS) of $0.06, which was below the expected $0.07, resulting in a negative surprise of 14.29%. On the positive side, StubHub’s revenue reached $446 million, surpassing the forecasted $425 million. Additionally, Goldman Sachs raised its price target for StubHub from $15.00 to $16.00, maintaining a Buy rating on the stock. The firm highlighted StubHub’s improved market share position and a resilient demand environment as reasons for the upgrade. StubHub also reiterated its full-year 2026 guidance during its earnings call. These developments reflect the company’s ongoing efforts to strengthen its market position and financial outlook.
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