Market Overview

Roku's Stock Gets A New Street-High Price Target

Roku's Stock Gets A New Street-High Price Target

Roku Inc’s (NASDAQ: ROKU) installed base has been growing rapidly amid COVID-19, suggesting upside to the third-quarter estimates, according to Needham.

The Roku Analyst: Laura Martin maintained a Buy rating on Roku, while raising the price target from $190 to $255.

The Roku Thesis: The rapid growth of Roku’s installed base should drive higher monetization as advertising budgets rise, Martin said in the report.

The analyst cited recent eMarketer data as indicating that Roku is poised to reach 80% of all Connected TV users by yearend.

“By implication, if any new OTT service wants to launch in the US, it must be distributed by Roku to be successful,” she wrote in the note.

See Also: How Disney+ Can Surpass Netflix, According To Dan Loeb

While noting Roku is the dominant AVOD platform in the U.S., Martin said AVOD had gained 600 basis points of market share at the expense of SVOD in the third quarter.

Martin further wrote that Roku’s devices were gaining market share.

“Streaming box/sticks are now in 57% of US homes in April 2020, up from 50% in April 2019…In April 2020, SmartTVs were in 51% of homes up from 43% of US homes in April 2019,” she said.

ROKU Price Action: Shares of Roku traded up 4.5% to $222 at the time of publication Thursday.

Latest Ratings for ROKU

Nov 2020B of A SecuritiesReiteratesBuy
Nov 2020NeedhamMaintainsBuy
Nov 2020RosenblattMaintainsBuy

View More Analyst Ratings for ROKU
View the Latest Analyst Ratings


Related Articles (ROKU)

View Comments and Join the Discussion!

Posted-In: Laura Martin NeedhamAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga

Latest Ratings

PMTB of A SecuritiesMaintains18.5
IVRB of A SecuritiesMaintains3.0
EFCB of A SecuritiesMaintains15.5
NYMTB of A SecuritiesMaintains3.5
NLYB of A SecuritiesMaintains8.5
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at