Tech

FuboTV shares soar after Wedbush analyst upgrades, citing ‘compelling’ buying opportunity

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Shares of FuboTV Inc.
FUBO,
-10.30%

rose 1.8% in premarket trading Friday after Wedbush analyst Michael Pachter recommended investors buy, saying the recent pullback offered a “convincing entry point”. Pachter raised his rating to outperform after lowering it to neutral a month ago, but kept his price target at $6, up 53.1% from Thursday’s closing price of $3.92. That downgrade had followed a 45.0% increase on August 16 prior to the company’s investor event, with Pachter citing uncertainty about how dilutive to shareholders a much-needed capital increase would be. The stock had fallen 38.3% since that rally through Thursday. Pachter said the company has a “solid lead” in providing live sports programming, a thriving advertising business and an opportunity for a sports betting company to partner with an established sports TV station while slowing down the subscriber,” Pachter said. Competition, inflation and rising content costs are short-term headwinds. “Given the upside and downside risks, we believe the current stock price offers an attractive entry point,” Pachter wrote in a note to clients. The stock is down 74.7% through Thursday, as the S&P 500
spx,
-0.84%

has fallen by 21.2%.

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