FuboTV to Gain From Disney Integration, Subscriber Growth, Wedbush Says

MT Newswires Live09-18 23:22

FuboTV (FUBO) could see stronger subscriber growth, better advertising results, lower customer losses and longer-term earnings growth as its Disney (DIS) integration expands, Wedbush Securities said in a note Friday.

New CEO Alisa Bowen could help Fubo make better use of Disney's marketing, content discovery and advertising systems, although the company still needs to show it can execute its plans well, the investment firm said.

Wedbush expects Fubo's recommendations on ESPN and Hulu Live TV integration with Disney+ to bring more viewers and subscribers to the platforms in coming quarters, while the company is expected to improve advertising revenue by using Disney's ad system and to limit subscriber losses by offering more flexible packages across sports, news and family entertainment.

Recent subscriber growth supports Wedbush's outlook if Fubo keeps growing, with management targeting more than $300 million in adjusted earnings before interest, taxes, depreciation, and amortization by fiscal 2028 and positive free cash flow in fiscal 2027 to fiscal 2028, according to the note.

Wedbush kept its outperform rating and $19 price target on Fubo, saying it expects the shares to benefit from its November investor update as investors gain more confidence in the company's plans.

Price: 9.78, Change: -0.13, Percent Change: -1.26

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