Fubo’s Record High Short-Lived After BMO Downgrade

© Reuters.

By Christiana Sciaudone —  Fubotv Inc (NYSE:) is whipsawing investors, jumping 130% in the week through yesterday, only to slide 9% today.

The streaming service had been riding high as the head of the company insinuated live sports partnership deals may be on the table, only to tumble after BMO Capital knocked the company to a hold-equivalent from outperform.

Analyst Daniel Salmon bumped his target to $50 from $33, and cited recent outperformance for the ratings downgrade.

“We raise our valuation and target again owing to higher streaming comp set valuation and expanded distribution opportunities (e.g. partnership with Hisense and VIDAA) that add upside tension to subscriber estimates,” Salmon said in a note, according to StreetInsider. “Our new target implies downside to shares, however this is more a reflection of recent volatility than an incrementally negative view. With that said, we think secular tailwinds and recent execution are reflected at these levels.”

Shares had jumped more than 430% to a 2020 record as cord-cutters turn to new alternatives for their viewing pleasure.  

FuboTV, founded in 2015, is mainly focused on providing live sports including NFL, MLB and NBA games. It streams 90% of nationwide football games; 100% of the NHL and 88% of MLB. FuboTV also has more regional sports networks in its base package than any other live TV streaming platform.

Third quarter numbers reported last month exceeded the company’s own expectations. Paid subscribers rose 58% in the third quarter from a year earlier to 455,000. Revenue per user also increased in that time by 14% to $67.70.  


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