Wedbush analysts reaffirmed their bullish stance on FuboTV (NYSE:FUBO) after the company issued a shareholder update detailing new financial targets tied to its ongoing Hulu Live integration, framing the announcement as a step toward stabilizing investor expectations.
Wedbush reiterated its ‘Outperform’ rating and raised its price target to $24 on a split-adjusted basis, implying upside of about 100% from current levels of $12.
“We are optimistic that the combined company will be a more dominant competitor to YouTube Live TV than each is on a standalone basis,” they wrote. “Still, with much to prove, we are taking this opportunity at the beginning of Fubo’s integration story to reset to the low end of the range.”
The analysts described the shareholder letter as “proactive,” adding that the update helps establish a clearer baseline after recent uncertainty.
Fubo is guiding to $80 million to $100 million in pro forma adjusted EBITDA for 2026, modestly above Wedbush’s prior estimate. Looking further out, the company is targeting at least $300 million in adjusted EBITDA by 2028. Wedbush noted that improvements could be driven in part by lower wholesale fees paid to Disney and efficiencies across content and advertising.
The analysts also highlighted management’s expectations for at least $200 million in cash on hand by the end of 2026 and positive free cash flow in 2027 and 2028.
While acknowledging that Fubo remains “a show-me story that needs a clear vision,” Wedbush wrote that “this reset provides a floor for institutional investors to participate in upside over the next two years.”
The firm pointed to potential upside from synergies tied to the Hulu integration. “There remain several unknowns at this juncture, but we remain cautiously optimistic that Fubo can realize cost, revenue, and operational synergies through flexible programming, advertising optimization, and enhanced marketing opportunities,” they wrote. Notably, Fubo’s ad inventory is expected to be sold alongside Disney properties, which could support revenue growth.
Addressing content concerns, they noted that despite the removal of NBCU programming in late 2025, management said subscriber impact has been lower than expected. Fubo has begun cross-promoting Hulu + Live TV, which retains NBCU content, creating what Wedbush described as an internal upsell funnel.
The firm wrote that Fubo could benefit from leverage acquired expertise from Disney and platform advantages as Hulu + Live TV is expected to move onto the Disney+ app in 2026.
It added that the combined company’s scale as the number two player in the North American virtual Multichannel Video Programming Distributor market positions it to increase advertising revenue per user and compete more effectively with YouTube Live TV.
Despite the more optimistic outlook, Wedbush emphasized that execution remains key, noting there is still “much to prove” as the integration progresses.