FuboTV gets on vMVPD Map, appears to reach inflection point, says Wedbush

Wedbush notes that after years of increasing losses, FuboTV (FUBO) appears to have reached an inflection point where it is focused on optimizing per-subscriber metrics on both a revenue and cost basis, reducing cash burn, and inching toward profitability. The firm is confident that FuboTV can ultimately reach profitability, and its recent results coupled with its beneficial positioning during the Spectrum (CHTR)-Disney (DIS) carriage dispute have given investors incremental confidence in its ability to do so by its target date of FY25. Should Fubo accelerate its subscriber growth or its ad ARPU expansion, Fubo could reach profitability much sooner, Wedbush adds. The firm believes the company’s renewed focus on improving its ad sales and increasing ad inventory, and on its cost-efficient regional sport networks, coupled with its expense management should allow it to maintain positive gross margins. Wedbush further thinks the current share price affords a compelling entry point. The firm has an Outperform rating on FuboTv’s shares with a price target of $5.