Seaport Global Believes in A Buy, Upgrades Its Rating on fubuTV (FUBO)

On Monday, Seaport Global Securities upgraded its rating on fuboTV (FUBO) shares from Neutral to Buy, with a new price target of $2.50. The move came after the company’s stock initially surged 17% last Friday following strong fourth-quarter 2023 results but later dipped 8% as investor focus shifted back to top-line and subscriber growth.

Seaport’s analyst highlighted the attractive risk-reward balance for fuboTV shares, particularly for investors interested in small-cap stocks and those with agile trading strategies. Despite guidance metrics for Q1 2024 and the full year falling short of expectations, the analyst noted unchanged adjusted OIBDA estimates, reflecting progress in expense management.

The $2.50 price target is derived from a blend of projected 2024 revenue and discounted cash flow valuation, including the net present value of fuboTV’s net operating losses. While some investors may seek stronger top-line growth, the analyst sees limited downside risk due to the company’s antitrust lawsuit against Sports Streaming JV and the growth in advertising revenue. Additionally, fuboTV’s margins are improving rapidly, despite a slower subscriber growth pace.

fuboTV is included in the PRISM AdTech and Media Index. Follow for more…