FuboTV (FUBO) may be able to achieve cost, revenue, and operational synergies via flexible programming, ad optimization and improved marketing opportunities after the merger with Walt Disney's (DIS) Hulu Live, Wedbush said in a note Thursday.

The investment firm said FuboTV's shares have seen some pressure since it released Q1 results as a combined business with Hulu Live after it it withheld guidance and announced a reverse stock split.

"While this remains a show-me story that needs a clear vision, this reset provides a floor for institutional investors to participate in upside over the next two years," the note said.

Wedbush highlighted the fact that FuboTV's ad inventory will be sold alongside Disney Plus, ESPN Plus, and Hulu later this month, and added that it sees "ample upside potential by Fubo leveraging its acquired expertise from Disney."

"We are optimistic that the company will be a more dominant competitor to YouTube TV than each is on a standalone basis," the note said.

Wedbush has an outperform rating on FuboTV and decreased its price target to $3.50 from $5.