Wedbush analyst Michael Pachter reiterated a Buy rating on fuboTV (FUBO – Research Report) today and set a price target of $6.40.
Michael Pachter has given his Buy rating due to a combination of factors that highlight fuboTV’s strategic shift towards profitability and growth potential. After years of financial losses, fuboTV has refocused its efforts on improving per-subscriber revenue and cost metrics, significantly reducing cash burn. This strategic pivot has brought the company closer to profitability, with a modest negative EBITDA and positive free cash flow by the end of 2024.
Furthermore, Pachter anticipates the completion of a merger with Hulu + Live TV, which is expected to enhance fuboTV’s market position and financial health. The combined entity is projected to achieve substantial EBITDA and maintain no net debt, which could significantly increase its valuation. Pachter is optimistic about fuboTV’s ability to add a substantial number of subscribers annually, driving significant revenue growth. This potential for accelerated growth and profitability underpins his Buy rating, supported by a price target that reflects the company’s promising outlook.
Pachter covers the Communication Services sector, focusing on stocks such as Electronic Arts, Take-Two, and Doubledown Interactive Co. According to TipRanks, Pachter has an average return of -3.6% and a 44.40% success rate on recommended stocks.