FuboTV Inc (FUBO)

[JohnCM]

FuboTV Likely to Gain From Over-The-Top Service, Online Sports Betting Shift, Oppenheimer Says

02:27 PM EDT, 05/12/2021 (MT Newswires)

FuboTV ( FUBO ) is likely to gain from the industry-wide shift to over-the-top streaming services and online sports betting after reporting improved results in the first quarter, Oppenheimer said Wednesday.

"Most OTT providers have focused on low-cost entertainment offerings, forcing sports fans to remain tethered to pay TV," said the firm's analysts, led by Jed Kelly. "fuboTV is exploiting the opportunity in sports by providing a comparable viewership experience at a lower cost than its pay TV counterparts."

Oppenheimer maintained the streaming television service's outperform rating while lowering its price target to $32 from $35.

New York-based fuboTV late Tuesday reported a loss of $0.59 per share in the first quarter, narrower than a loss of $1.83 a year earlier. Analysts polled by Capital IQ expected a loss of $0.57. Revenue surged to $119.7 million from $7.3 million last year. The Street expected $103.9 million.

The company also reported net subscriber additions of 43,000, compared with a decline of 28,000 a year before, "blunting investor skepticism of higher churn from not carrying Turner during prime sporting events," said Kelly.

"We see lower churn as indicative of fuboTV's product offering garnering enough customer loyalty that will eventually allow the company to build a larger live sports offering without relinquishing its unit-economic integrity," the analysts said.

Price: 19.33, Change: +1.66, Percent Change: +9.38