FuboTV price target cut, but analysts remain bullish

FuboTV price target cut, but analysts remain bullish Proactive uses images sourced from Shutterstock

Wedbush analysts reiterated an ‘Outperform’ rating on FuboTV (NYSE:FUBO), saying they are “cautiously optimistic” the company can capitalize on growth opportunities following its recent combination with Hulu Live.

Fubo’s shares have been under pressure since the company reported its first-quarter results as a combined business, withheld forward guidance, and announced a reverse stock split.

“This remains a show-me story that needs a clear vision,” the analysts wrote, adding that the reset “provides a floor for institutional investors to participate in upside over the next two years.”

The analysts said they see potential for cost, revenue, and operational synergies through flexible programming, advertising optimization, and marketing opportunities, particularly as Fubo’s ad inventory is expected to be sold alongside Disney properties.

They highlighted opportunities in advertising, content and programming costs, and procurement, while noting that management did not provide guidance on revenue, EBITDA, or synergy projections.

Wedbush said it sees upside from Fubo leveraging Disney’s expertise and its scale as the number two player in the North American virtual multichannel video programming distributor market to drive higher advertising ARPU.

“We see a runway to >$400 million in EBITDA by financial year 2028,” the analysts wrote, adding that they believe the combined platform could be a more competitive rival to YouTube TV than either business on a standalone basis.

The firm lowered its 12-month price target to $3.50 from $5, reflecting updated long-term EBITDA assumptions, and reiterated its ‘Outperform’ rating, saying it expects Fubo’s shares to rise on improving EBITDA and positive free cash flow through 2026.