StubHub attracts a wave of bullish ratings after the IPO quiet period ends

[StubHub Office Window Manhattan]
wdstock

StubHub Holdings (NYSE:STUB [https://seekingalpha.com/symbol/STUB]) attracted a wave of bull ratings after the expiration of the post-IPO quiet period, including from Bank of America (Buy, price target $25), Evercore ISI (Outperform, price target $29), and Wedbush Securities (Outperform, price target $25).

Bank of America analyst Justin Post said the firm expects healthy resale market growth, share gains, an emerging direct issuance business, and ad initiatives to drive revenue growth for StubHub (NYSE:STUB [https://seekingalpha.com/symbol/STUB]) well above other Internet marketplaces. Post pointed to the introduction of ads, team deals, and the U.S. World Cup as strong near-term catalysts for the stock.

Evercore ISI analyst Mark Mahaney said through its well-established, dominant position in the secondary ticketing market, StubHub (STUB [https://seekingalpha.com/symbol/STUB]) will be able to establish a formidable entry into the materially larger primary ticketing market.

Wedbush Securities analyst Scott Devitt noted StubHub (SUB [https://seekingalpha.com/symbol/SUB]) is a market leader in North America, and continues to gain share in what is called a large and highly fragmented international market that has been slow to consolidate. Following a period of modest performance, StubHub (STUB [https://seekingalpha.com/symbol/STUB]) is seen as repositioning itself for sustainable longer-term growth, supported by market share gains in North America, reinforced by an aggressive sales and marketing strategy, and the adoption of the direct issuance model. Meanwhile, platform innovation is anticipated to improve the experience for both buyers and sellers. "We see a multi-year runway of robust growth ahead of peers, primarily supported by an inflection in growth of the direct issuance segment in the coming periods," wrote Devitt.

Seeking Alpha analysts have a consensus Hold rating on STUB.

Shares of StubHub Holdings (STUB [https://seekingalpha.com/symbol/STUB]) rose 4.4% in premarket trading to $19.72. The IPO was priced at $23.50 on September 17 and rose to as high as $27.89 before settling back.

MORE ON STUBHUB HOLDINGS

* StubHub Holdings: Ticket Platform Is On Sale Itself [https://seekingalpha.com/article/4824455-stubhub-holdings-ticket-platform-is-on-sale-itself]
* StubHub: Fierce GMS Growth, But Concerns On Sliding Profits [https://seekingalpha.com/article/4822815-stubhub-fierce-gms-growth-but-concerns-on-sliding-profits]
* Post-IPO, StubHub Has A Lot To Prove [https://seekingalpha.com/article/4821344-post-ipo-stubhub-has-a-lot-to-prove]
* StubHub begins trading above its pricing range following its highly anticipated IPO [https://seekingalpha.com/news/4495653-stubhub-begins-trading-above-its-pricing-range-following-its-highly-anticipated-ipo]
* StubHub announces pricing of IPO [https://seekingalpha.com/news/4495506-stubhub-announces-pricing-of-ipo]