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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Finance 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