Yesterday, fuboTV Inc. (FUBO) announced that it has signed a market access agreement to offer its Sportsbook service in Pennsylvania through a deal with The Cordish Companies, a provider of state-wide mobile access for both sports betting and iGaming. Shares were up almost 5% in pre-market trading at the time of writing.
fuboTV is a sports-focused, live TV streaming service. Fubo Gaming was launched in January 2021 through the acquisition of Vigtory. Fubo Gaming aims to provide a comprehensive sports & entertainment experience through sports betting and interactive gaming with its Fubo Sportsbook app. (See fuboTV stock charts on TipRanks)
The deal brings Fubo Sportsbook to a minimum of four states, including the previously announced deals with New Jersey, Indiana, and Iowa. The service is expected to launch in the fourth quarter of this year, subject to regulatory approvals.
By adding the thrill of live streaming to the betting experience on one app, fuboTV is expected to attract more fans compared to competitors like DraftKings Inc. (DKNG), which only operates a wagering platform.
Scott Butera, President of Fubo Gaming, said, “Entering Pennsylvania, one of the largest sports betting and iGaming makers in the U.S., is a significant accomplishment for our forthcoming Fubo Sportsbook which, in this market, can also include mobile casino games.”
Following the news, Oppenheimer analyst Jed Kelly assigned a Buy rating to the stock with a price target of $32, implying 24.6% upside potential to current levels.
Kelly said, “We believe if FUBO can develop a competent Online Services Business (OSB) product, it will be a differentiated player in the industry as the only operator that can offer tier-1 sports content to sports betting consumers… The next catalyst is 2Q earnings, where we believe a full soccer slate should bode well for subscriber growth.”
The stock commands a Strong Buy consensus rating based on 6 Buys and 1 Hold. The average fuboTV price target of $38.86 implies 51.3% upside potential to current levels. Shares have gained around 111% since their initial listing in October 2020.
fuboTV scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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