The old axiom of what is going to come down is currently very suitable for fuboTV (FUBO). The sports-oriented streaming platform came out of the gates after the public debut in October, with shares increasing more than fivefold in more than two months.
Over the past 7 days, however, the stock has returned 37% of profits to the market. A sale was only to be expected after such an unlikely run-up, but the landfill was particularly conspicuous.
However, one analyst believes that the lower share price could offer new investors the opportunity to enter FUBO cheaply.
Darren Aftahi, analyst at Roth Capital, rates the stock a buy with a price target of $ 55. The implication for investors? Upside down of ~ 42%. (To see Aftahi’s record, click here)
‘We believe that FUBO is still one of the best ways for investors to access the cutting-edge dynamics, and that it is still supported by recent price increases among SVODs (both Netflix (NFLX-NC) and Disney + (DISNC) which prices have increased) in recent months), ”said the 5-star analyst. “We believe that the overall market trend of cutting, together with FUBO’s growth initiatives, should lead to a higher outlook for subscribers for 1H21.”
According to recent market research from Antenna, FUBO is taking market share from larger vMVPDs (virtual multichannel video programming distributors) such as Hulu and YouTube TV. Its market share increased by 100 and 200 bps in October and November, respectively.
While Aftahi’s FY21 total entries of 685,000 are the same, the promising data remains that the analyst increases its FY22 sub-count estimates by ~ 2% to ~ 910,000.
There may be other upstream drivers as well. Possible catalysts include the short-term threat of additional Covid locks that could lead to interruptions / restrictions, while FUBO’s plans for a free play feature in FY21 ‘are longer possible to enforce its model.’
Overall, FUBO has a moderate buy rating from the analyst consensus, based on 6 buy, and 1 hold and sell each. Shares sell for $ 38.74, and the average price target of $ 36.13 implies a 7% downside. But, as Aftahi’s remarks indicate, there may be much better potential here than first seen. It should also be noted that FUBO earns a 10 Smart Score on TipRanks. (See FUBO stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are those of the proposed analyst. The content is for informational purposes only. It is very important to do your own analysis before investing.