Media Stock Stages Bounce Off Morgan Stanley Bull Note

The stock is coming off a seven-month low, hit earlier this week

Deputy Editor
Dec 9, 2021 at 9:17 AM
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The shares of  FuboTV Inc (NYSE:FUBO) are up 3% at $20.37 this morning, following a bull note from Morgan Stanley. The analyst initiated coverage with an "overweight" rating and a $28 price target -- which is a 41% premium to last night's  close. 

Morgan Stanley's optimistic call comes just days after FUBO dipped to a seven-month low of $16.26, pressured lower by its 10-day moving average. It was a dismal November for FUBO, which suffered a post-earnings bear gap early on in the month. FUBO wound up losing 34.2% last month, though it looks like a rebound is at play, as the equity reclaimed the aforementioned 10-day trendline this week. 

Analysts were split on FUBO coming into today. Four in coverage called it a "strong buy," while three said "hold." Meanwhile, the 12-month consensus price target of $42.78 is a 109.4% premium to last night's close. 

Despite last month's slide, short interest has been falling, down 14.2% in the last two reporting periods. These bearish bets still make up 18.2% of the stock's available float, and represent over three days at the equity's average daily pace of trading. This could create additional wind at the equity's  back, should these shorts continue to jump ship. 

What's more, the stock's 14-day Relative Strength Index (RSI) of 31 sits just on the cusp of "oversold" territory. This  indicator typically predates a short-term bounce. 

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