StubHub rallies – StubHub Holdings Inc. (NYSE:STUB) extended its rally for a second day, rising 7.91% to close at $11.46 a share after Guggenheim Securities reiterated a buy recommendation and set a $12.50 price target, citing momentum tied to the ongoing World Cup.
For a second straight day, StubHub Holdings Inc. (NYSE:STUB) caught a bid—enough to lift the stock 7.91% higher on Friday and close at $11.46 a share.
The move came with a fresh push from Guggenheim Securities. In a market note, Guggenheim reiterated its buy recommendation on StubHub and placed a $12.50 price target on the stock. That target implies 9% upside potential from the latest closing price.
Guggenheim’s optimism is tied directly to the ongoing World Cup. The tournament began on Thursday, June 11, and is scheduled to run through July 19. Guggenheim pointed to the expectation that revenues from the event will be realized in the second and third quarters. and said its price target still has room to be revised upward as the growth picture unfolds.
Investors also had real numbers to hold onto. Guggenheim estimates StubHub will post an adjusted EBITDA of $427 million. That estimate lands slightly above the high end of management’s guidance range of $400 million to $420 million, and it is also above Wall Street’s consensus of $411 million.
The optimism isn’t floating in midair, either. StubHub reported that it swung to net income of $48 million from a $22.18 million net loss in the same period last year. Revenues rose 12.17% to $446 million from $397.6 million year-on-year.
Taken together. the stock’s momentum. the Guggenheim note. and StubHub’s recent results make for a single story investors appear to be rewarding: a business that is showing stronger earnings while a major global event—starting June 11 and running through July 19—could further feed the revenue outlook into the middle of the year.
StubHub STUB Guggenheim Securities World Cup stock rally adjusted EBITDA price target NYSE