20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
The case for turning incrementally positive on streaming video hardware and software company Roku Inc (NASDAQ:ROKU) is based on its industry-leading platform and an attractive international growth opportunity, according to Guggenheim.
The Analyst
Michael Morris maintained a Buy rating on Roku's stock with a price target lifted from $119 to $170.
The Thesis
Roku will continue benefiting from the growth of streaming video, as it occupies a "rare position" of delivering a win-win-win-win arrangement with hardware manufacturers, consumers, content providers and advertisers, Morris said in a Wednesday note. (See his track record here.)
Roku's platform is able to satisfy each stakeholders' individual needs and is a key selling point for investors at a time when competition intensifies and Roku's stock valuation is elevated, the analyst said.
Roku remains in the early innings of building out a global platform, he said. Most recently, the company announced an expanded partnership with Hisense to sell Roku-equipped TVs across Europe by the end of the year.
The company's strategy to focus on the global market is notable for three reasons, Morris said:
- The growth of streaming video globally will outpace the U.S. over the next five to 10 years.
- Smart TV penetration outside of the U.S. remains low.
- Roku is able to demonstrate its advantages to content providers and original equipment manufacturers and generate value for everyone.
Guggenheim's revised $170 price target is based on five times 2024 platform segment sales of $3.4 billion and values the international business at $6 billion.
Price Action
Roku shares were down 10.23% at $135.12 at the time of publication Wednesday.
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Photo courtesy of Roku.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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