Guggenheim analyst Curry Baker upgraded StubHub to Buy from Neutral with a price target of $12.50, up from $8.50, which offers 30% potential upside. The company reset Street expectations for this year and next, and the bar is now "extremely low" on direct issuance and advertising, the analyst tells investors in a research note. The firm believes any progress shown by StubHub "would represent upside optionality." In addition, several items should accelerate the company's growth starting in Q2, including the World Cup, lapping all-in pricing, and easy Q4 compares, says Guggenheim. The firm also sees StubHub's core secondary business continuing to take share both in North America and globally.
