In a report released today, Justin Post from Bank of America Securities maintained a Hold rating on StubHub Holdings Incorporation Class A, with a price target of $19.00.
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Justin Post’s rating is based on the potential impact of upcoming regulatory changes in the UK and the US on StubHub Holdings Incorporation Class A. In the UK, new legislation may limit the resale of event tickets above face value and cap service fees, which could negatively affect StubHub’s gross merchandise sales (GMS) by reducing the markup on secondary ticket sales. This could result in a significant headwind to the company’s projected GMS growth by 2026.
Furthermore, in the US, the Federal Trade Commission is expected to propose new regulations aimed at protecting consumers in the live event industry. These regulations could impose additional restrictions on secondary ticketing markets, posing a risk to StubHub’s business model. Despite StubHub’s leadership in the resale ticketing market and its long-term growth opportunities, these regulatory uncertainties contribute to the Hold rating, as they may hinder the company’s ability to accelerate GMS growth in the coming years.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $15.50 price target.