fuboTV Jumps 4% On Upbeat 4Q Outlook; Needham Sees 120% Upside

Shares of fuboTV Inc. gained another 4% in Wednesday’s pre-market trading session after closing 12.8% higher a day earlier as the live TV streaming company’s preliminary 4Q revenues and subscriber numbers exceeded its initial guidance.

fuboTV (FUBO) expects to generate 4Q revenues in the range of $94-$98 million, which implies year-over-year growth of 77%-84%. This compares with the company’s initial guidance of $80-$85 million.

In addition, the company sees the number of paid subscribers exceeding 545,000 at the end of the fourth quarter, which would translate into a growth rate of over 72% year-over-year. The company had earlier expected to have 500,000-510,000 paid subscribers at the end of 4Q.

The strong 4Q preliminary data reflects strong demand for live TV streaming, the company said. As for 2021, fuboTV will focus on growing its ad revenues and improving its market position in the live streaming market. (See FUBO stock analysis on TipRanks).

On Jan. 5, Needham analyst Laura Martin assigned a Buy rating and a price target of $60 (119.5% upside potential) on the stock, citing its strong fundamentals.

Martin commented that, “there are both fundamental and technical catalysts that suggest that the price weakness caused by the current supply/demand imbalance of FUBO shares will subside quickly, and represent a 2021-low price for FUBO shares.”

Meanwhile, the Street has a cautiously optimistic outlook on the stock with an analyst consensus of a Moderate Buy. That’s based on 6 Buys, 1 Hold and 1 Sell. The average analyst price target stands at $34, which implies upside potential of about 24.4% to current levels. Shares have gained 172.8% over the past year.

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