fuboTV (FUBO) is a Cheap OTT Play with a Free Equity Warrant on Sports Betting, Needham Reiterates Buy

March 29, 2021 6:35 AM EDT
Get Alerts FUBO Hot Sheet
Price: $31.72 +0.32%

Rating Summary:
    7 Buy, 1 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 11 | New: 50
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Needham & Company analyst Laura Martin reiterated a Buy rating and $60.00 price target on fuboTV (NYSE: FUBO) on the belief that the company is a cheap OTT play. The 5 key points of the bull thesis are:

1) it participates in CTV industry growth (both subs and advtg) of 30% to 100%/year
2) FUBO represents a low-price competitor inside the $86B/year of US subscription revenue linear TV business
3) strong consumer demand trends
4) revenue stream diversification lowers risk
5) track record of execution excellence
6) LT optionality upside from real time betting on FUBO's TV screen during live sporting events

The analyst stated "While FUBO is focused on growing its installed base of subscribers, we are most excited about high-margin add-on new revenue streams such as up-sells, advertising, wagering, channel fees, etc. From a valuation POV, FUBO is inexpensive because it trades at about 1/3 of ROKU's multiple, and a 25% discount to NFLX's multiple. Wagering multiples are much higher than these, suggesting FUBO is more undervalued compared with that industry."

For an analyst ratings summary and ratings history on fuboTV click here. For more ratings news on fuboTV click here.

Shares of fuboTV closed at $22.95 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Needham & Company