Share performance doesn’t always follow a company’s trajectory. Case in point: fuboTV (FUBO) stock has taken a beating in 2021, down by 23% year-to-date. All the while, however, the sports-focused streamer has been exhibiting some very healthy growth. Q1’s financials, for instance, were a display of strength across the board.

Recently, Wall Street’s most fervent FUBO bull, Needham’s Laura Martin, sat down for a fireside chat with company CEO David Gandler. Following the conversation, Martin is no less enthusiastic of the company’s prospects.

Martin highlights several key take-aways from the talk.

For one, any worries the recent Warner Bros and Discovery merger will negatively impact FUBO were put to rest. The company believes the deal shows the importance of bundles and thinks linear TV business models will last longer than anticipated – which is a boon for FUBO – “because it represents a source of incremental revenue for content amortization.”

Martin thinks that, at least for the next 5 years, Linear TV will remain a window of distribution, with “powerful economics.”

“It also shows that no streaming service can ever have enough content because consumers want sports, lifestyle, reality TV, movies and other content all in one place,” the 5-star analyst further said.

FUBO’s big market share gains were also discussed. At the end of the March quarter, the company had 590,000 subs, a 105% year-over-year increase vs. the 24% growth for all vMVPDs (virtual multichannel video programming distributors).

FUBO puts the outsized growth down to the fact it concentrates “solely on sports fans and through using unique content, tools, features and data analytics they maximize sports fan engagement and minimize monthly churn.”

Another strong metric from the quarter relates to subscriber acquisition costs (SAC). The company’s goal has been to limit these to between $65 and $100 for each new sub. Martin, however, thinks these came in at roughly $63 each in the quarter, which is “aiding revenue growth.”

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Lastly, Martin highlights FUBO’s “on fire” advertising revenues. These increased by 206% year-over-year in Q1 to $12.6 million and puts the company “on target to double its advertising revenue (at a 70% contribution margin) during 2021.”

All in all, the analyst rates FUBO shares a Buy rating along with a $60 price target. Investors could be sitting on gains of ~180%, should Martin’s forecast play out over the coming months. (To watch Martin’s track record, click here)

Martin’s buoyant outlook for the company is no anomaly on the Street. The stock has a Strong Buy consensus rating, based on 6 Buys and 1 Hold. The Needham analyst’s colleagues see plenty of upside, as well. The shares are anticipated to add ~81% of muscle over the coming months, given the average price target clocks in at $38.86. (See FUBO stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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