FuboTV stock rallies after Wedbush analyst upgrades, citing 'compelling' buying opportunity
Shares of FuboTV Inc. rallied 1.8% in premarket trading Friday, after Wedbush analyst Michael Pachter recommended investors buy, saying the recent pullback provided a "compelling entry point." Pachter raised his rating to outperform, after downgrading it to neutral a month ago, but kept his price target at $6, which implied 53.1% upside from Thursday's closing price of $3.92.. That downgrade had followed a 45.0% surge on Aug. 16 ahead of the company's investor event, with Pachter citing the uncertainty over how dilutive to shareholders a much needed capital raise would be. The stock had tumbled 38.3% since that rally through Thursday. Pachter said the company has a "solid head start" in offering live sports programming, a thriving advertising business and an opportunity for a sports wagering company to partner with an established sports TV broadcaster, while slowing subscriber, "fierce" competition, inflation and rising content costs are near-term headwinds. "Given the upside and downside risks, we think the current share price offers a compelling entry point," Pachter wrote in a note to clients. The stock has plunged 74.7% year to date through Thursday, while the S&P 500 has dropped 21.2%.
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