03:08 PM EDT, 08/06/2024 (MT Newswires) -- FuboTV's ( FUBO ) efforts to achieve profitability by 2025 could be significantly impacted by its ongoing lawsuit against the planned Venu Sports joint venture, involving Fox (FOX), Disney (DIS) and Warner Bros. Discovery (WBD), Wedbush said in a note Tuesday.

Wedbush noted that while Fubo is working towards reducing cash burn and optimizing per-subscriber metrics, the lawsuit's outcome could affect its high content costs and profitability trajectory.

Fubo hopes a "favorable lawsuit outcome" would allow it to "manage expenses," Wedbush said. If it does not win the case, costs will remain high or the company will have to let go of the content that has costs outweighing benefits.

The company seeks an injunction to block Venu Sports' rollout, but Wedbush remains skeptical about its success, citing the challenge of demonstrating "irreparable harm."

"Such a remedy is not typically granted to the plaintiff in a case unless damages would be objectively inadequate to address the harm caused," Wedbush said. The brokerage expects Venu Sports to launch this fall.

Wedbush maintained an outperform rating on Fubo's stock with a price target of $5.

Price: 1.32, Change: +0.01, Percent Change: +1.07