Why Citi is leaning in
Citi moved StubHub to a buy while shaving the target to 7 dollars from 9. Even with the lower target, Bazinet said the setup still implies roughly an 18% gain from Thursday's finish. He wrote that adjusted EBITDA should come in ahead of the Street and that full-year earnings are likely to come in close to the upper bound of the company's outlook.
What is driving the outlook
Bazinet tied the stronger view to a surge in app activity. He pointed out that record levels for weekly app download counts coincided with the World Cup in 2Q26, and said 3Q26 quarter to date has run even hotter. The tally was about 1.2 million downloads in the second quarter, with expectations for roughly 1.4 million in the third quarter and about 0.8 million in the fourth. He also sees StubHub delivering $10.9 billion in gross merchandise sales in 2026 - a mark he says sits above the firm's guidance.
Demand tailwinds and market position
Bazinet highlighted that StubHub is the most used online ticket resale platform, with about 40% share. The company has been riding a busy summer sports calendar and healthy concert demand. Earlier this year, StubHub told CNBC it is seeing the "K-shaped economy" pattern in live music, where big events are thriving while smaller shows lag.
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What it means for your money
The stock climbed 3.8% on the day and, if it ends in the green, that would be a third straight daily gain. Last trade was 5.97 at 3:21 PM EDT, up 0.02 or 0.42%. Even so, shares are still down 51% year to date. If Citi's call proves right, the story from here hinges on whether those app download gains and event tailwinds keep translating into the earnings track Bazinet is sketching out.
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