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.
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Create account Try a 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
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