Analysts at Berenberg Bank provided their views on fuboTV Inc. (NYSE:FUBO), mentioning the reason for a significant share price decline (down almost 50% year-to-date), including lofty investor expectations for subscribers and the expectation of sportsbook contribution in 2022, as well as the company’s stock being tied into a general risk-off and mean reversion environment. Further, gaming-related stocks have seen negative price action as the market weighs the risk/reward of TAM estimates and promotional costs.

The analysts believe management’s subscriber guidance provided during the Q4 earnings call, could prove conservative in 2022 and set the company up for “beat-and-raise” quarters given strength in sports viewership.

The analysts maintain the view that the business will benefit from the shift in ad spend from traditional TV to digital, which will be further bolstered by the company’s native digital wagering platform. The analysts lowered their price target to $20 from $50, while maintaining their buy rating.