fuboTV (FUBO) Stock Surges as JPMorgan Starts at Overweight, Sees 'Meaningful Upside'

December 9, 2021 9:54 AM EST
Get Alerts FUBO Hot Sheet
Price: $3.21 +0.63%

Rating Summary:
    5 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 24 | New: 13
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JPMorgan analyst Anna Lizzul initiated research coverage of fuboTV (NYSE: FUBO) with an Overweight rating and a $28.00 per share price target.

The company’s sport-focused business model presents a key advantage to its vMVPD competitors, Lizzul said.

“fuboTV remains relatively small compared to vMVPD peers in terms of market share, with an estimated ~7% of vMVPD subscribers as of 3Q21, compared to YouTube TV and Hulu with Live TV at ~30% and ~31%, respectively, and Sling TV at ~20%.. We anticipate that services with less reach may see a more challenging path ahead due to increased competition from larger vMVPDs and other OTT services, as well as difficulty in balancing subscriber costs vs. subscription and advertising fees. While we see some risks to the business model longer-term, we initiate with an Overweight rating as we believe shares present an attractive entry point given the ~40% decline since Q3 earnings on 11/9 (vs. S&P flat),” the analyst said in a client note.

Overall, the analyst believes that the ad-supported streaming platforms will continue to grow and take market share from linear TV.

“We expect that fuboTV’s advertising ARPU will continue to grow at +DD percentages annually and will increase as a percent of total revenue to 15-20% longer-term. The growth in advertising ARPU is attractive as the revenue stream drives higher incremental margins, without the associated subscriber programming costs as subscription revenue,” Lizzul added.

fuboTV stock price is up 3.5% today.



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