News York, March 04, 2024 - PRISM MediaWire - On Monday, Seaport Global Securities revised its rating on fuboTV (NYSE: FUBO) (FUBO) shares, upgrading from Neutral to Buy, and introduced a new price target of $2.50. This adjustment followed a notable 17% surge in the company's stock on the previous Friday, driven by robust fourth-quarter 2023 results. However, the stock later experienced an 8% decline as investor attention reverted to considerations regarding top-line performance and subscriber growth.
Seaport's analyst emphasized the appealing risk-reward proposition for fuboTV shares, particularly catering to investors inclined towards small-cap stocks and those employing agile trading strategies. Despite Q1 2024 and full-year guidance metrics falling below expectations, the analyst highlighted unchanged adjusted OIBDA estimates, indicative of advancements in expense management.
The $2.50 price target is derived from a combination of anticipated 2024 revenue and discounted cash flow valuation, encompassing the net present value of fuboTV's net operating losses. While some investors may prioritize stronger top-line growth, the analyst perceives limited downside risk owing to the company's antitrust lawsuit against Sports Streaming JV and the ascending trajectory of advertising revenue. Furthermore, fuboTV's margins are experiencing rapid improvement, notwithstanding a comparatively slower pace of subscriber growth.
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