The old axiom that what goes up must fall is particularly suitable now for fuboTV (FUBE) The sports-focused streaming platform came out quickly after its public debut in October, with stocks rising more than five times in just over two months.
However, in the past 7 days, the stock returned 37% of earnings to the market. A sale was expected only after such an implausible run, but the eviction was particularly attractive.
One analyst, however, believes that the lower share price may offer new investors an opportunity to enter the FUBO at low cost.
Roth Capital analyst Darren Aftahi evaluates the stock as a buy, along with a target price of $ 55. The implication for investors? ~ 42% positive. (To look at Aftahi’s history, click here)
“We believe that FUBO remains one of the best ways for investors to gain access to cable cutting dynamics and continues to be proven by the recent price increases between SVODs (Netflix (NFLX-NC) and Disney + (DISNC) by increasing prices in the last few months), ”said the 5-star analyst. “We believe that the general trend in the cable cutting market, together with FUBO’s growth initiatives, should lead to a higher perspective for subscribers in 1H21.”
According to a recent market survey by Antenna, FUBO has been gaining market share from large vMVPDs (distributors of virtual multi-channel video programming), such as Hulu and YouTube TV. Its market share increased in October and November by 100 and 200 bps, respectively.
Although Aftahi’s total AF21 subscriber estimate of 685,000 remains the same, promising data results in the analyst increasing his sub-count estimates for AF22 by ~ 2% to ~ 910,000.
There may be other positive factors as well. Possible catalysts include the short-term threat of additional blockages inflicted by Covid that could increase subs / limit turnover, while FUBO’s plans for a free play function in FY21 “bring optionalities to its long-term model”.
Overall, FUBO holds a Moderate Purchase rating from the analyst’s consensus, based on 6 purchases and 1 wait and sale, each. The shares are selling for $ 38.74, and the average target price of $ 36.13 implies a ~ 7% drop. But, as Aftahi’s comments indicate, there may be much better potential here than it appears at first. It should also be noted that FUBO wins a Smart Score 10 in TipRanks. (See FUBO stock analysis at TipRanks)
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Disclaimer: The opinions expressed in this article are exclusively those of the analyst presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.