Barrington Research analyst James Goss has reiterated the Market Perform rating on the shares of FuboTV Inc FUBO
The analyst senses somewhat of a shift in the ranking of objectives for management as it assesses the landscape and evaluates which priorities would best support the achievement of its valuation objectives.
Goss said the stock has been under pressure, and valuation measures are significantly constrained when applied to the stocks of companies for which earnings are nonexistent and lack a clear path to profitability.
FuboTV reported a 43% increase in its Q3 revenue aided by growth in North America.
There is significant seasonality in the business tied to the sports schedule, creating stronger growth trends in the second half of the year with the return of football, he added.
The analyst said the sports season should support Q4 subscriptions that are expected to improve to 1.365 million at the midpoint, an increase of 25,000 from the prior guidance level.
Full-year 2022 revenues for the U.S. segment are expected to increase to $952 million due to stronger subscriber trends than originally expected.
Goss cited that the Ad ARPU improved compared with Q2, with political advertising supporting ad levels.
The analyst remains supportive of the overall thesis on FuboTV, including aggressive subscriber acquisitions and expanding ARPU.
He thinks Fubotv’s further demonstration of progress toward achieving its ambition to be free cash flow positive by 2025 would be very encouraging.
Price Action: FUBO shares are trading lower by 1.11% at $3.55 on the last check Monday.
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