Darren Aftahi, an analyst from Roth MKM, maintained the Hold rating on fuboTV (FUBO – Research Report). The associated price target is $2.00.
Darren Aftahi has given his Hold rating due to a combination of factors surrounding fuboTV’s recent performance and future prospects. The fourth-quarter results showed promise with reduced losses and a break-even cash flow from operations, which is an encouraging sign of financial stabilization. Additionally, fuboTV’s advertising revenue continued to grow at a double-digit rate year-over-year, and there are plans to introduce a free ad-based channel in the latter half of 2024 to potentially boost user retention and acquisition. However, the company’s guidance for the fiscal year 2024 was mixed, with revenue projections roughly in line with expectations but a modest decline in subscriber numbers, hinting at a conservative outlook possibly due to upcoming competitive challenges.
Moreover, while fuboTV’s liquidity and cash burn have shown improvement, the increasing competitive landscape poses a significant risk that could lead to subscriber churn or hinder subscriber growth. The potential for new market entrants in the second half of the year could intensify these challenges. Plus, there are concerns about possible legal expenses. Despite the positive aspects of fuboTV’s performance, such as a notable year-over-year increase in average revenue per user and improved gross margins, these risks and uncertainties contribute to Aftahi’s Neutral stance and a price target that suggests a modest valuation based on projected gross profits.
According to TipRanks, Aftahi is a 5-star analyst with an average return of 19.5% and a 36.33% success rate. Aftahi covers the Technology sector, focusing on stocks such as Shopify, Alarm, and Digital Turbine.
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fuboTV (FUBO) Company Description:
Operating as a sports-focused live TV streaming service, fuboTV offers access to over 100 live TV channels, including many of Nielsen’s top ranked networks
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