FuboTV Inc’s (NYSE:FUBO) stock is an “inexpensive” way to gain exposure to trend of U.S. consumers transitioning towards OTT and streaming TV, according to Needham.
The FuboTV Analyst: Laura Martin maintained a Buy rating on FuboTV, with a price target of $15.
The FuboTV Thesis: FuboTV reported its fourth-quarter revenues ahead of Needham’s estimate, but its adjusted EBITDA loss was worse than expected, Martin said in the note. The company reported quarterly sales of $231 million, which beat the consensus estimate of $213.07 million by 8.4%.
Martin mentioned 10 key takeaways from the results:
- Another beat and raise quarter, which is “100% of the quarters since it's been a public company.”
- Strategically, the company’s competitive position has “never been stronger.”
- Wagering continues to be small.
- Ad revenues grew 100% year-on-year.
- Added 185,000 subscribers during the quarter.
- Demonstrated strong operating leverage.
- Upside to political revenues in 2022.
- No international expansion.
- Molotov acquisition closed in December, and “we expect it to add about $15mm-$20mm to FUBO's 2022 revs and about $20-$30mm to EBITDA losses.”
- The company will add OEMs “as these drive FUBO sub growth.”
FUBO Price Action: Shares of FuboTV traded higher by 2.7% to $7.85 at the time of publication.
