Streaming television company fuboTV got an extremely optimistic outlook from analysts at Needham.
While analysts at Needham maintained their buy rating, they doubled their price target on fuboTV shares to $60 per share.
Analyst Laura Martin noted that they view FUBO as an “inexpensive” option for public investors to participate in the US consumer shift toward OTT and Streaming TV. “FUBO is a skinny bundle (also known as a virtual MVPD) that markets itself as a 'sports-first' linear TV replacement. FUBO offers over 110 channels of live linear TV that represent about 84% of a typical large bundle's TV viewing, at $60/month, about half the typical MVPD price," Martin said.
According to Needham, the key upside value drivers for fuboTV in 2021 include market share gains against rivals, expansion of the fubo sports button's availability, the company moving towards including a gambling revenue stream within 12 months, and the strong short interest (12 million shares shorted, about 2 days average trading volume) which creates built-in demand for shares. Needham views fuboTV with 62% upside valuation relative to other streaming peers in its coverage.
Needham boosted its 2021 revenue estimate by 5% to $460 million, and also raised its 2022 revenue expectation by 3% to $750 million.