FuboTV (FUBO) - Get Report lost ground Wednesday after the streaming-TV platform was downgraded to market perform from outperform by a BMO Capital analyst who raised concern about the company's valuation following its recent gains.
Shares of the New York company at last check were down 12% at $54.80. On Tuesday, they'd leaped 25%.
Analyst Daniel Salmon also raised his share-price target for the company to $50 from $33, saying the move reflected higher streaming comparable valuations and FuboTV's expanded distribution opportunities, which he says could push subscriber estimates upward.
The analyst added, however, that while FuboTV offers a more promising path to profitability than most new investors expect, ”secular tailwinds" and recent execution are reflected in the stock at its current levels.
Salmon said the new target implies downside from the company's close on Tuesday, but “this is more a reflection of recent volatility than an incrementally negative view.”
The downgrade comes just one day after the company was the subject of an extremely bullish note from analysts at Needham.
Needham maintained its buy rating and doubled its price target on FuboTV to $60 a share. The move came after the company's market value nearly quintupled since it was first listed on the New York Stock Exchange in October.
On Monday, the company's shares soared on a report that fuboTV is examining exclusive sports content deals.
FuboTV shares also jumped last week after analysts at Wedbush initiated coverage of the stock with an outperform rating and $40 price target.
Last month, the company said third-quarter revenue rose 47% to $61.2 million, beating Wall Street's call for $54.3 million.