Fubotv Inc (FUBO.US) tanked at one point more than 10% after Needham & Co. lowered the price target of company stock to $15 from $60 at the same time maintaining its "buy" rating.
"We lower our FUBO 12-month price target to $15 from $60. Notably, even though we raised our 2022 revenue estimate 3 times during 2021, FUBO shares fell 36%, despite the S&P 500 rising 27%," analyst Laura Martin said.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appFinance service company sets its price targets using discounted cash flows and "considering the consensus view that the Fed will raise interest rates 4x in 2022 for a total of 100 basis points, we raise our weighted average cost of capital assumptions, which lowers our 12-month price targets"
Martin also added: "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."
Fubotv Inc (FUBO.US) stock launched today's session with a bearish price gap, below the lower limit of the descending channel which now acts at resistance. If current sentiment prevails, price may test support at $9.00 where lows from October 2020 are located. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
