StubHub (STUB) is offering no clear top-line catalyst for 2027 amid expanding margins, BofA Securities said in a Wednesday note, following the company's Q3 results.
"We see a difficult near-term set up with limited 4Q growth, tough World Cup comps, Baseball season uncertainty, and lack of clarity on the company's growth initiatives," the report said.
Late Tuesday, StubHub reported a Q3 net income of $0.05 per share on revenue of $502.0 million. Analysts polled by FactSet expected $0.08 and $506.7 million respectively.
StubHub indicated healthy live event demand and sees potential for sales and marketing efficiency from scale, the note said. But it deferred most outlook questions to Q4 earnings call.
"With the impact of direct issuance and advertising still early, and limited visibility on marquee events in 2027, we still see risk to 2027 Street estimates," the note said.
BofA lowered its price objective to $6.50 from $7.00 and kept its underperform rating.
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