Analysis: FuboTV Stands Strong Against Industry Giants
FuboTV Inc., the sports-first TV-streaming company, is currently embroiled in a high-profile battle against a joint venture from industry heavyweights Walt Disney Co., Fox Corp., and Warner Bros. Discovery Inc. Despite the challenging landscape, analysts are optimistic about FuboTV’s potential for investors.
Wedbush analyst Michael Pachter believes that FuboTV has significant room for growth, especially if it can effectively compete in the realm of skinny bundles. Pachter noted in a recent report that FuboTV’s strategic focus on improving subscriber metrics and moving towards profitability has positioned the company well for the future.
FuboTV’s CEO, David Gandler, has been vocal about the company’s lawsuit to block the upcoming sports-streaming venture led by Disney, Fox, and Warner Bros. Discovery. Gandler emphasized the importance of fair competition and offering consumers affordable streaming options.
Despite the legal challenges, Wedbush remains bullish on FuboTV, highlighting the company’s efforts to strengthen its ad sales, enhance regional sports networks, and control expenses. Pachter predicts that even with moderate subscriber growth, FuboTV could achieve profitability by 2025.
Wedbush reiterates its outperform rating and $5 price target for FuboTV, while Seaport Research Partners upgraded the stock to a buy rating with a $2.50 price target, citing an attractive risk-reward profile.
Currently valued at $597.32 million, FuboTV is being closely monitored by analysts, with mixed ratings among nine surveyed experts. Despite recent share price fluctuations, FuboTV’s stock is showing signs of recovery in premarket trading, following a notable decline in the previous session.
Analyst comment
Positive news. Analysts believe FuboTV has potential for substantial upside by standing against skinny bundles and focusing on optimizing per-subscriber metrics. Despite a lawsuit against rivals, FuboTV’s renewed focus on ad sales and minimizing expenses is encouraging. Wedbush has an outperform rating with a $5 price target, while Seaport Research Partners upgraded FuboTV to a buy rating with a $2.50 price target. FuboTV’s stock is up 2.6% in premarket trades.
