The COVID-19 pandemic kept people in their homes, and accelerated many trends that were already moving daily life online. One of those is video streaming, which took off and now has developed into a battle of the fittest (and wealthiest). FuboTV Inc. (FUBO) has its hat in the ring, and is making its way to competing with the likes of Hulu and Disney+ (DIS) in regard to the content it offers. FuboTV releases its earnings results after market hours on Tuesday, August 10. (See FuboTV stock charts on TipRanks)
Reporting on its progress is Darren Aftahi of Roth Capital Partners, who explained that there are several positive factors to take into account in FUBO’s pipeline. Those including new gaming and sportsbook platforms, management shifts, and the LG smart TV deal.
Aftahi maintained a Buy rating on the stock, and assigned a price target of $42. This target reflects a potential 12-month upside of about 61.60% from current levels.
The five-star analyst detailed that the sportsbook betting launch could bring with it much upside, but is not without its risks. The company itself is already highly exposed to sports-stoppages and other disruptions related to the ongoing pandemic. However, FuboTV has brought onto its board of directors the former head of Penn National Gambling (PENN) to help facilitate the implementation of its own platform.
FUBO is already seeing strong membership growth, and Aftahi expects it to report about 174% year-over-year subscriber revenue. While the company is attempting to diversify its entertainment offerings, it has recently slashed the A&E network, putting it at a slight disadvantage to competition.
As far as the LG deal is concerned, Aftahi is encouraged that it will bring about more subscribers and even help expand brand awareness for FUBO. The deal itself is not being factored into FuboTV’s guidance, so any positive data could drive upside.
On TipRanks, FUBO has an analyst rating consensus of Strong Buy, based on 6 Buy and 1 Hold ratings. The average FuboTV price target is $38.86, reflecting a possible 12-month upside of about 51.92%. As of this writing at 10:20am EST Wednesday, FUBO is trading at about $25.55 per share.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.