Investors should buy fuboTV at a discount now, according to Wedbush. The company upgraded the streaming service’s stock to outperform from neutral and maintained its price target of $6. This implies that shares could jump 53%. Shares of fuboTV have fallen almost 75% since the start of the year, which partly explains Wedbush’s upgrade. The company also set strong targets at a recent Investor Day, saying it plans to reach profitability by 2025 after years of losses. To achieve this goal, the company must focus on raising capital and reducing liquidity, analyst Michael Pachter wrote in a Friday note. “We’re confident fuboTV can do both, but we don’t know how dilutive the fundraising will be and how quickly their cash burn will improve,” Pachter said. “We believe our $6 price target fully accounts for this uncertainty, as stocks have fallen well below since our recent downgrade.” Compelling entry He added that given the risk versus reward, the current stock price offers a “compelling entry point”, especially given fuboTV’s business. “FuboTV has a solid head start in delivering live sports programming to its subscribers, has a thriving and growing advertising business, and presents a compelling opportunity for a sports betting company to partner with a broadcaster. established sports television,” Pachter said. True, without raising capital, fuboTV will run out of cash in a year, Wedbush noted. In the short term, hurdles include slowing subscriber growth, intense competition, inflation, and rising content costs. Wedbush also expects the title to be choppy in the coming months, but begins a general upward trend in the World Cup, which takes place in November and December. “We now view this as a compelling entry point for those with a downside risk appetite,” he said.
Wedbush upgrades fuboTV to outperform citing ‘compelling entry point’ after stock pullback