Streaming video provider fuboTV (FUBO) isn't quite the household name that Netflix (NFLX) or Disney+ (DIS) is. However, it's made many advancements in recent days thanks to one key differentiating factor.
That factor also caught JPMorgan's attention, as the analyst started coverage with fairly high marks. I'm personally bullish on fuboTV thanks to that differentiating factor and on a few others to be named. (See Analysts' Top Stocks on TipRanks)
Looking at fuboTV's share price reveals a lot of volatility over the past year. In the space between December 14 and December 21 in 2020, the company's share price more than doubled. It took about the same amount of time for the company to lose all those gains and then some. The company ultimately saw its stock go lower than its December 14 levels.
Another surprise gain ensued, with a smaller pullback, followed by an even bigger gain. That gain took about two months to disintegrate and fall below the levels seen in early January. A much slower climb started, which managed to hold, as the company spent most of the second half of the year around the $30 mark. Most recently, downward momentum has picked up again, and the company is at prices not seen since May. (See fuboTV stock charts on TipRanks)
fuboTV got a little boost thanks to word from JPMorgan. Its analyst, Anna Lizzul, declared the stock "overweight" and gave it a $28 price target. That represents a substantial upside, which you'll see more detail about later.
Lizzul's biggest prompt in such a rating was a key differentiating factor for fuboTV: sports. While the company offers many standard entertainment options, it also provides a heavy dose of sports. Many of its competitors provide minimal or even no access to sports due mainly to licensing issues. Lizzul did see some "long-term risks" potentially impacting fuboTV. However, the low current share price reduced those risks.
Great Growth Potential
fuboTV is definitely not the biggest name around in streaming. However, it got a nod on PCMag's list of best streaming services for 2022. It also made number eight on Tom's Guide's list.
Its Starter plan, its base-level plan, offers around 120 channels and several national and international sports options. Users will have the major networks, like NBC, CBS, and FOX, to handle most sports. NFL Network and NBA TV will also supply content in sports, along with Univision and beIN for international sports options. In addition, those looking for specific programming options will have access to a range of on-demand choices.
While fuboTV's base option, starting at $64.99, is a bit pricey, it's going to be worthwhile for sports buffs in particular. Those who want just streaming content will find cheaper streaming with Netflix, Hulu, and even Disney+. However, it's that big differentiator, sports, that not only got JPMorgan's attention but should also get that of viewers.
fuboTV has also set up some exciting new options going forward. It recently established a partnership with the Professional Fighters League to bring out Challenger Series events. The firm also bought France's Molotov, which operates the Mango streaming platform. With four million monthly active users in its two services, Molotov is a major new addition to fuboTV.
Sports have long been a problem for streaming. Rights issues prove a significant problem for sports streaming. Previously established contracts further complicate the matter. The fact that fuboTV found a way around at least some of these to build such a sports package is no small feat. Admittedly, this makes the company kind of a niche provider. However, given the niche in question, it's quite a niche to occupy.
Wall Street's Take
Turning to Wall Street, fuboTV has a Moderate Buy consensus rating. That's based on six Buys and three Holds assigned in the past three months. The average fuboTV price target of $43.71 implies 135.8% upside potential.
Analyst price targets range from a low of $28 per share to a high of $60 per share.
Concluding Views
There's a lot to like about fuboTV. The company boasts great expansion potential thanks to a slate of recent deals and has a fantastic selling point that few other platforms can match. Throw in its bargain-basement share price, and there's little reason not to throw in.
Granted, fuboTV has many competitors, but most of these competitors are working in a completely different direction. The company may well have its own little part of the market, and that's enough to give it a significant edge.
Its expansion plans also make it clear that it's not just resting on its laurels, either. Take all these factors together, and you'll see why I'm bullish on fuboTV.
Disclosure: At the time of publication, Steve Anderson did not have a position in any of the securities mentioned in this article.
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