Skip to main content

Market Overview

Roku's Fundamentals 'Remain Strong,' Analyst Says

Roku's Fundamentals 'Remain Strong,' Analyst Says

Streaming video hardware and software maker Roku Inc (NASDAQ: ROKU) has benefited over the months from people spending their time at home and recent momentum can be sustained even after a vaccine is available to the public, according to BofA Securities.

The Roku Analyst: Ruplu Bhattacharya maintains a Buy rating on Roku's stock with a price target lifted from $260 to $310.

The Roku Thesis: The COVID-19 pandemic accelerated the ongoing shift away from linear TV towards over-the-top (OTT) viewership and this certainly benefited Roku as its "fundamentals remain strong," Bhattacharya wrote in a note. But even in a post-COVID reality, streaming hours should remain above pre-COVID levels as consumers saw first hand the advantages of streaming video.

Consumers have come to appreciate Roku's platform that offers more variety of content, freedom to choose their subscription offerings, and the ability to consume free content.

Related Link: 3 Roku Analysts Recap 'Stellar' Q3

On Roku's end, the ability to accurately gather customer data allows it to offer audience guarantees to ad buyers. Roku is also able to command a premium cost per mille (CPM).

Looking forward to 2021, Bhattacharya said Roku will focus on building out its international business by following a similar game plan that worked in the U.S. Most notably, Roku will focus on building scale, driving engagement, and then monetizing the platform. The company should be able to grow Ad-Supported Video on Demand (AVOD) viewership as well as Ad spend in markets like Canada, the United Kingdom, Germany, and Spain.

ROKU Price Action: Shares of Roku traded around $274.62 publication time.

Latest Ratings for ROKU

Feb 2021NeedhamMaintainsBuy
Feb 2021Wells FargoMaintainsOverweight
Feb 2021RosenblattMaintainsBuy

View More Analyst Ratings for ROKU
View the Latest Analyst Ratings


Related Articles (ROKU)

View Comments and Join the Discussion!

Posted-In: Coronavirus Ruplu Bhattacharya streaming videoAnalyst Color Price Target Analyst Ratings Best of Benzinga

Latest Ratings

BOLTSVB LeerinkInitiates Coverage On36.0
CYRXSVB LeerinkMaintains75.0
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.
Everything you need to know about the latest SPAC news.
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