FuboTv Inc (NYSE: FUBO) created ripples on Wallstreet last week after the company announced its plan to acquire sports betting and interactive gaming company Vigtory. The news sent the stock surging 20% higher with hopes the company will launch its sport book by the end of the fiscal year. In addition, the shift in analyst sentiment over the past 3 weeks has provided investors additional confidence moving into 2021. With such speculation surrounding the 12 month outlook on FuboTV stock, this article will explore everything investors need to know as we move into 2021.
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What are analysts saying about FuboTV stock?
Firstly, the general sentiment across the board of Wallstreet analysts has shifted over the past 30 days. Amongst 7 analysts, the average 12 month price target sits at $42.14 a share. This suggests an upside potential of 31% in comparison to the current trading price. In addition, 6 analysts have listed a Buy rating whilst 1 other analyst has listed a hold rating. Interestingly, the average 12 month price target has increased by 45% over the past 30 days of trading. The following price targets are the most recent to date:
1/6/2021 Evercore ISI – analysts boosted the 12 month price target from $24 to $32 a share. The price target is well on par with the current trading price.
12/23/2020 BMO Capital Markets – analysts downgraded the rating on the stock from Outperform to Market Perform. However, the downgrade also brought about a price target update with analysts boosting the target from $33 to $50 a share. This marks the third positive change in the price target from BMO Capital in the past 3 months.
12/22/2020 Needham & Company – analysts boosted the 12 month price target from $30 to $60 a share. This suggests an upside potential of 87% from the current trading price.
Short sellers advise of FuboTV stock risks
Lightshed Partners analysts Rich Greenfield, Brandon Ross and Mark Kelley entered the spotlight after claiming the FuboTV was overvalued. The analysts listed their 12 month price target at a belittling $8 a share. The main concern from Lightshed analysts revolved around the valuation of the company, with “small” subscription numbers.
However, LightShed Partners are known amongst some investors after they had made a blunder in May 2020, placing a sell rating on Disney. It is fair to say that LightShed have had their clashes with retail investors, however it is important to review both bullish and bearish cases for FUBO stock.
Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research.
In conclusion, the general consensus amongst Wallstreet analysts remains bullish, with the average price target 30% above the current trading price. Furthermore, we are yet to see any updates from analysts after the acquisition news was released. This could spur further bullish sentiment as the company goes for gold in its quest for a Sportsbook by the end of the fiscal year. In contrast, the bearish view remains with the valuation of the company. It will be interesting to see how LightShed and other bears perceive the acquisition news and price the company according. We will continue to cover any new price target updates for FUBO stock as we move into 2021.
Written by Tyger Fitzpatrick
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.