FuboTV’s Outlook Solid, Near-term Difficulties Loom

Cable news as an industry has been dying for some time, and streaming services are killing it. Competition amongst the companies providing this service is fierce, and while many saw their valuations soar during the pandemic, the space has been hit hard by the recent sell-off in tech and growth names. One of which is FuboTV, Inc. (FUBO), which has seen its stock price fall about 68% over the last six months.  

The sports-focused television streaming firm is set to report its quarterly earnings this Wednesday after hours, and while it may not present the most impressive results, some analysts remain bullish.  

One such analyst is Michael Pachter of Wedbush Securities, who foresees a possible near-term sell-off for the stock, yet also long-term gains. This is due, in part, to the company’s decision to pre-announce revenue and subscription numbers while leaving earnings out of the picture, for now.

Pachter rated the stock a Buy but lowered his price target to $19 from $32. This new target still suggests considerable 12-month upside potential of 126.19%.  

Pachter told investors, “fuboTV’s comprehensive entertainment and sports offering is a real differentiator, and its focus on the sports viewer/bettor should serve to accelerate subscriber growth.” He is enthused by Fubo’s investments toward its sportsbook programming, as well as its acquisition of French TV streamer, Molotov.

The Molotov acquisition is anticipated to be factored into Fubo’s 2022 guidance, come its earnings release. Pachter was level-headed on the takeover, noting that “while that extends the road to profitability, we think it increases the scale of future profitability,” and explained that the deal should increase Fubo’s international reach and overall product offering.  

Not all was rosy from Pachter’s outlook on the stock or its industry, as he elaborated that society may be reducing the amount of its television consumption as it emerges from a two-year pandemic. Moreover, he believes a significant segment of the public would prefer to customize their content rather than having it predetermined, as with Fubo.  

On TipRanks, FUBO has a Strong Buy analyst consensus rating based on 5 Buys and 1 Hold rating. The average FuboTV price target is $21.20, indicating possible 12-month upside potential of 152.38%. FUBO closed trading on Friday at $8.40 per share.  

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