Tech

FuboTV stock price offers ‘attractive entry point’. It’s getting an upgrade.

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FuboTV shares are down 75% this year.

Dream time


FuboTV

The stock offers “an attractive entry point,” with potential near-term positive catalysts that could help the stock, an analyst at Wedbush said.

Shares of


FuboTV

(ticker: FUBO), a live streaming company that focuses heavily on sports broadcasting, struggled this year, dropping 75% in 2022. The stock has fallen 85% in the past 12 months. In August, Wedbush analyst Michael Pachter demoted shares to Outperform’s Neutral, citing “slowing subscriber growth, fierce competition, inflation and rising content costs”.

But on Friday, the same analyst raised the stock to Outperform again, maintaining its price target of $6. He wrote in a research note that the current stock price of around $4 is an attractive entry point for investors.

“FuboTV has a solid lead in providing live sports programming to its subscribers, has a thriving and growing advertising business and presents an attractive opportunity for a sports betting company to partner with an established sports television channel,” wrote Pachter.

The analyst added that the issues he highlighted earlier, such as slowing subscriber growth, competition, inflation and rising content costs, still pose headwinds in the near term. “However, to some extent our concerns are allayed by catalysts for the fourth quarter, including the new upfront cycle (we think FuboTV had a more successful upfront year over year) and expected original content around the upcoming World Cup, which will be unusual in November. played. and December.”

He also said the company has the potential to be profitable by 2025.

Shares of FuboTV rose 3.3% in premarket trading Friday to $4.05.


S&P 500

futures were down 1.2%.

Advertising and inflation have been major points of discussion around streaming stocks lately, as behemoths like Netflix (NFLX) and Walt Disney’s (DIS) Disney+ is getting ready to release ad-supported tiers on their platforms. Barron’s described what this means for streaming stocks in a recent cover story.

Write to Angela Palumbo at: [email protected]

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