Shares of sports streaming service fuboTV (NYSE:FUBO) are off to the races again on Tuesday because analysts keep saying it can go higher. Excited investors have bid fuboTV stock up another 15% today as of 11 a.m. EST. But it's not as if investors were in need of some good news. They already had plenty to cheer considering FuboTV stock has now more than doubled over the past five trading days.
According to information from The Fly, Laura Martin, an analyst with Needham, raised the price target for fuboTV stock from $30 per share to $60 per share. At the time, the stock traded around $50 per share, implying 20% upside to reach Martin's target. Martin believes the company is set to steal market share from competitors and has the possibility for more upside once it rolls out sports betting.
Just as a reminder, Martin's price target isn't the upper limit for fuboTV stock. Indeed, Martin could even become more bullish about the company's prospects in short order. For proof, consider the price target for fuboTV stock was already raised not that long ago. On Nov. 23, Martin had raised the stock's price target from $20 per share to $30 per share.
In other words, in a single month, a professional analyst became 100% more bullish on fuboTV stock. But it wouldn't be outrageous to think this could happen again with other research firms. For example, just last week fuboTV stock surged because a Wedbush analyst started coverage with a $40 price target. At the time, this implied more than 50% upside. But since the stock price has already surpassed the bullish target, Wedbush might follow Martin's lead and set the price target higher.
This demonstrates just how quickly sentiment can change and offers a reminder that we need to be careful when we read investing news. In the short term, we can't predict how people will feel about our favorite stocks. That's why we choose to focus on business trends as they play out over the course of years.