Wedbush downgraded StubHub (STUB) to Neutral from Outperform with a price target of $10, down from $18, following the Q4 report. The firm has “limited conviction and visibility” in the value of StubHub’s direct issuance business, saying management’s “lofty” expectations for the segment are not playing out as anticipated. In addition, regulatory risks for the industry will remain an overhang on the shares, the analyst tells investors in a research note. Wedbush also thinks StubHub is vulnerable to AI-enabled disintermediation in the coming years as operators face risk from commoditization.
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