Analysts Optimistic as FuboTV Price Target Lowers
Analysts displaying optimism toward FuboTV are maintaining a positive outlook despite a recent decrease in its price target. Wedbush has restated its ‘Outperform’ rating on FuboTV (NYSE: FUBO) while expressing cautious enthusiasm about the company’s ability to leverage growth opportunities after its merger with Hulu Live.
Current Market Challenges
FuboTV’s shares have faced downward pressure, particularly after the company released its first-quarter results as a unified entity. The report included no forward guidance and announced a reverse stock split, prompting concern among investors.
Analysts’ Perspective
Wedbush analysts describe the situation as a “show-me story,” indicating the need for a concise strategic vision from FuboTV’s management. They believe the reset offers institutional investors a floor to engage with potential future upside over the next two years.
Growth Opportunities Identified
The analysts outlined multiple avenues for FuboTV to enhance revenue and operational efficiencies. Key growth factors include:
- Flexible programming options
- Optimized advertising strategies
- Enhanced marketing opportunities
- Collaboration with Disney on ad inventory
They emphasize that FuboTV could harness Disney’s extensive reach to boost its advertising revenue per user (ARPU).
Financial Forecast
Looking ahead, Wedbush projects FuboTV could achieve over $400 million in EBITDA by the fiscal year 2028. This growth potential is attributed to its position as the second-largest virtual multichannel video programming distributor in North America.
Adjusted Price Target
In light of revised long-term EBITDA expectations, Wedbush has adjusted FuboTV’s 12-month price target to $3.50, down from $5. Despite this change, the firm remains confident that improving EBITDA and favorable free cash flow trends through 2026 will support a rise in Fubo’s share value.
