FuboTV's Strategic Cost-Cutting Fuels Optimism: 'Laser-Focus' On Efficiency Spurs Analyst Upgrade

Shares of FuboTV Inc (NYSE: FUBO) rose in early trading on Monday, after the company reported its fourth-quarter results.

The company is executing well with cost-cutting to conserve cash, so that it may reiterate the 2025 guidance of positive free cash flows, according to Seaport Research Partners.

The FuboTV Analyst: David Joyce upgraded the rating for FuboTV to a Buy, while raising the price target to $2.50.

The FuboTV Thesis: The company recorded higher-than-expected net adds of 141,000 in North America, with lower-than-anticipated net losses in the rest of the world, which drove subscription revenues above estimates, Joyce said in the upgrade note.

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“We think the fact that there is a continued growth opportunity despite the possible competition from the much larger program suppliers' pending Sports Streaming JV (the products are not apples-to-apples) suggests that the laser-focus on cost cuts, while advertising revenue gains momentum, should be serious considerations for an investment in FUBO shares,” the analyst wrote.

“We also believe that FUBO's antitrust lawsuit, while being focused on its major programming suppliers, means there is little to lose, with the company's claim that it is paying 30%-50% higher rates than market given its size,” Joyce stated. “With the DoJ focused on this issue, we see little risk in FUBO losing the programming, and in fact could benefit from parity pricing and other carriage features,” he added.

FUBO Price Action: Shares of FuboTV were up 0.5% to $1.91 at the time of publication on Monday.

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