Shares of streaming-TV company fuboTV (NYSE:FUBO) surged on Wednesday after an analyst started coverage of the stock off with a very bullish rating. It's only been a public company since October, but its stock is already up close to 200%. It's adding to those gains today. As of 10:30 a.m. EST, fuboTV stock was up 10%.
When a small company like fuboTV has an initial public offering (IPO), it can take some time before prominent analysts begin providing coverage for their customers. But late yesterday afternoon, news broke that Wedbush analyst Michael Pachter was initiating coverage on the stock. Pachter started fuboTV off with a whopping $40 per share price target, according to The Fly.
At the time of Pachter's rating, fuboTV stock was trading around $26 per share. Therefore, the $40 per share price target implies 54% upside, and a number like that grabs investors' attention. This is why fuboTV stock is soaring today.
Among the companies that went public in 2020, fuboTV's IPO received little fanfare. But it's an interesting growth stock for investors to at least place on their watch list. At the end of the third quarter of 2020, it had 455,000 paying subscribers, up 58% year over year. And Q3 subscription revenue was up 64% from last year to $53 million. In other words, there are real, encouraging business results to support growing enthusiasm for fuboTV stock, making it worthy of more research.