Wedbush raised the firm’s price target on FuboTV to $6 from $5 and keeps an Outperform rating on the shares. The firm believes preliminary Q2 results are encouraging, even though guidance was quite conservative.

Shares of FuboTV jumped over 20% in premarket trading.

While the company still posted a year-over-year decline, Fubo should return to subscriber growth as it looks to begin offering skinny bundles later this year.

Wedbush believes it is heading in the right direction, especially in terms of right-sizing its costs and achieving positive EBITDA in the quarter.

FuboTV expects higher revenue and more subscribers in its second quarter but said it would pause guidance while the proposed merger with Hulu + Live TV remains pending.

The sports-first live TV streaming platform said it now expects total revenue in North America in the second quarter to be $365 million, up from a previous $345 million.

For the rest of the world, second-quarter revenue is expected to be more than $8.5 million, up from a previous guidance of $7 million, as well as 340,000 paid subscribers, up from previous expectations of 330,000.

According to a poll of analyst forecasts on FactSet, total revenue was expected to be $353.7 million for the quarter.

Net loss is expected to be about $8 million, which represents an improvement of around $18 million year-over-year, as well as adjusted earnings before interest, taxes, depreciation and amortization of at least $20 million, which would be an increase of at least $30 million.

The company also said it would withhold guidance going forward while. "At this time, Fubo will pause providing guidance of future results while the proposed business combination with Hulu + Live TV is pending," the company said.

The company expects to release its quarterly results on Aug. 8.