Live-streaming sports broadcaster fuboTV (FUBO -3.38%) announced on Tuesday that it was buying fantasy sports outfit Balto Sports as a means of expanding into online sports betting, which an analyst sees as a catalyst for its stock to jump 36% from its current level.

ROTH Capital analyst Darren Aftahi thinks the deal is just one of many fuboTV will be making in the near future as it transitions to a "freemium" and real-money play. The freemium model initially lets users play for free, but in-app purchases allow it to monetize the business.

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fuboTV said it intends to leverage its proprietary technology to transition Balto's tools for organizing and playing fantasy sports into a platform for both free-to-play and online sports wagering.

Noting the sports betting market is expected to be a $155 billion opportunity by 2024, CEO David Gandler said, "We believe there are significant synergies between consumers who enjoy wagering and our subscribers who enjoy streaming live sports, creating a flywheel opportunity."

The sports-first live streamer said there will be additional announcements in the future as it analyzes other opportunities.

That has Aftahi seeing a boost to fuboTV's stock. While he originally had a $29 price target on the media stock, he's now raised it to $36 as a result of the Balto acquisition giving it a new growth driver. The stock closed trading on Tuesday at $26.74 per share.