Yahoo Finance FuboTV Shares Slide After Needham Trims Price Target
By Sam Boughedda
Investing.com — Shares of streaming service Fubotv Inc (NYSE:FUBO) fell more than 7% Friday after Needham&Co. analyst Laura Martin slashed her price target.
The analyst cut the price target on Fubo's shares to $15 from $60 but maintained a buy rating.
"We lower our FUBO 12-month PT to $15 from $60. Notably, even though we raised our 2022 rev estimate 3 times during 2021, FUBO shares fell 36%, despite the S&P 500 rising 27%," stated Martin.
The analyst said all of their price targets are based on discounted cash flows and that "considering the consensus view that the Fed will raise interest rates 4x in 2022 for a total of 100 basis points, we raise our WACC (weighted average cost of capital) assumptions, which lowers our 12-month price targets.
"The changes to our DCF cause us to lower our FUBO price target to $15, largely because 85% of FUBO's total DCF value sits in its estimated terminal value," concluded Martin.
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