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Why Needham Thinks FUBO's Rally Is Just Getting Started

The stocks has more than quadrupled in 2020

Digital Content Manager
Dec 22, 2020 at 9:31 AM
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The shares of Fubotv Inc (NYSE:FUBO) are extending yesterday's 26.06% rally after Needham said it sees even more upside for the stock, lifting its price target to $60 from $30 and upgrading the security to "buy" from "hold." The analyst in question said the streaming concern's recent win streak, sparked by a number of potential sports content deals, isn't over just yet, and called the security relatively inexpensive compared to its sector peers. 

The security is up 16.2% at $57.51 at last check, pacing for its fifth straight win and even more two-year highs. The security's recent climb up the charts since October has been nothing short of impressive, with the 20-day moving average capturing several pullbacks along the way. Coming into today, FUBO sported an over 455% year-to-date lead. 

The majority of analysts are already quite bullish on the stock. Prior to today, all seven in coverage considered Fubotv stock a "buy" or better. There could be room for more price-target hikes, though. The 12-month consensus price target of $38.57 is a 32.1% discount to last night's close. 

Despite this recent rally, the equity is still being heavily shorted, with bears continuing  to build their positions. The 13 million shares currently sold short make up a whopping 23.3% of the stock's available float, and would take over three days to cover at FUBO's average pace of trading. Should some of these shorts start changing their tune, it could put even more wind at the equity's back. 

 

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