Needham analyst Laura Martin has maintained their bullish stance on FUBO stock, giving a Buy rating on October 30.
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Laura Martin’s rating is based on several strategic advantages that fuboTV currently holds. One of the key factors is the recent acquisition by Disney, which now owns a significant 70% stake in the company. This ownership reduces financial risk and enhances the potential for favorable risk/reward scenarios. Additionally, the merger with Hulu+ LiveTV has expanded fuboTV’s subscriber base to 6 million, which is nearly four times its previous count, leading to potential reductions in content costs.
Furthermore, the expanded subscriber base allows for more bundling options, which could help reduce customer churn. The integration of fuboTV’s advertising business into Disney’s operations is another positive aspect, potentially boosting revenue streams. The company’s focus on sports and entertainment also broadens its total addressable market, while the subscriber acquisition cost to average revenue per user ratio being below the target indicates efficient customer acquisition strategies.
In another report released on October 30, Wedbush also reiterated a Buy rating on the stock with a $5.00 price target.