Fubotv Inc(NYSE:FUBO) can enjoy cost savings, eliminate litigation overhang and have better scale after signing a deal withWalt Disney Co(NYSE:DIS) earlier this week.

Fubo Impact:Roth MKM analystDarren Aftahicalls the Disney tie-up a potential "fairy tale outcome" for Fubo that could help the company benefit in the streaming space.

The analyst reiterated a Neutral rating on Fubo and raised the price target from $2 to $4.75.

Aftahi said the deal, which will see Disney own 70% of the combined company with FuboTV and Hulu+LiveTV, is expected to close in 12 to 18 months.

"The combined company...