6 Reasons To Own FuboTV In 2021

Live TV streaming provider Fubotv Inc FUBO has seen its stock gain in value five-fold since its initial public offering in early October and the stock still has legs to run higher, according to Needham.

The Analyst: Laura Martin maintains a Buy rating on FuboTV's stock with a price target lifted from $30 to $60.

The Thesis: Fubo TV has six clear catalysts that support a bullish case for the stock in 2021, Martin wrote in a note. These include:

1. Third-party data shows Fubo's market share more than doubled in the past two years to 5% of the streaming market. Further market shares are possible as growing consumer awareness should lower subscriber acquisition costs.
2. Fubo confirmed a partnership with Hisense in January 2020 to become its preferred sports partner for its VIDAA TVs. Conversion rates are twice as high as normal subscription rates and there is reason to believe Fubo didn't pay for this "valuable" subscriber acquisition channel.
3. Fubo's December acquisition of Balto Sports represents its first step into the large and fast-growing online sports betting.
4. Fubo's large current short position accounts for two days worth of trading volume. The short interest creates demand for shares.
5. Fubo's stock continues to trade at a 62% discount to the peer average of OTT streaming companies.
6. The company can close the valuation gap as it is expected to grow the connected TV (CTV) advertising business that boasts 80% incremental margins by 150% in 2021.

FUBO Price Action: Shares of Fubotv were trading higher by 15% Tuesday morning at $56.80. The stock up about 115% over the past five days alone as traders become more bullish on the nascent streaming player.