Market Overview

Does Roku's Place As Streaming Market Leader Make It A Buy?

Share:
Does Roku's Place As Streaming Market Leader Make It A Buy?
Related ROKU
40 Stocks Moving In Thursday's Pre-Market Session
Jim Cramer Shares His Thoughts On Electronic Arts, Ulta And Roku
The Vetr community has upgraded $ROKU to 4.5-Stars. (Vetr)

Roku Inc (NASDAQ: ROKU)'s less than stellar performance since its initial public offering has many investors asking if the company's leadership in the streaming video market makes it a compelling buy despite a rough trading debut.

There is little doubt that the future of television and video will be streaming-based, and consumers will demand a wide selection of products to suit their needs, Citi's Mark May and Mark Kelley said in an initiation report. Roku has established itself as being an established leader that faces competitive threats from tech behemoths like Apple Inc. (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), which certainly bodes well for the longer-term outlook.

The industry as a whole continues to benefit from content producers that are opting to deliver programming to consumers that are only available through streaming platforms.

Nevertheless, May and Kelley initiate coverage of Roku's stock with a Neutral rating and $24 price target. The absence of a bullish rating despite a bullish outlook for the company's strong position in a growing market is attributed to the stock's performance so far, the analysts said.

"We view the near-term upside as limited given the stock's performance since the IPO," the analysts wrote.

At publication, shares of Roku were down 4.62 percent at $20.86.

Related Links:

Roku, Snap The Top Stocks Among Short Sellers

Cramer On Roku's IPO
_________
Image Credit: By Mattnad (Own work) [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons

Latest Ratings for ROKU

DateFirmActionFromTo
Nov 2017OppenheimerDowngradesPerformUnderperform
Nov 2017Morgan StanleyMaintainsEqual-Weight
Oct 2017NeedhamInitiates Coverage OnBuy

View More Analyst Ratings for ROKU
View the Latest Analyst Ratings

Posted-In: Roku IPO streaming videoAnalyst Color News Initiation Analyst Ratings Movers Tech Best of Benzinga

 

Related Articles (AAPL + GOOG)

View Comments and Join the Discussion!

Partner Center