By Sam Boughedda
Investing.com — Shares of streaming TV service Fubotv Inc (NYSE:FUBO) jumped 7.5% off recent lows to $9.53 after being upgraded by technology, media and telecommunications research firm LightShed Partners.
LightShed said in a research piece that it is upgrading Fubo to neutral from sell and removing its $6.50 target price, giving up on its call to short the stock. However, it isn’t bullish on the stock and is merely waiting to see “whether management abandons their sports betting ‘fantasy’ to reduce the cash burn.”
In the note, LightShed said it previously sold short the stock because Fubo was one of the best examples of the market craze during the meme stock rally last winter.
“With a market cap of nearly $1.4 billion, adjusted EBITDA and free cash flow negative through at least 2025 and cash likely to run out in 2023, FUBO could very well be a zero in the next 24 months,” LightShed said.
“All that said, with Fubo stock down nearly 85% in 13 months and the company sitting on $375 million of cash, we are going to wait and see whether management abandons their sports betting “fantasy” to reduce the cash burn in 2022 and beyond,” they added.
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