- The stock price of Roku Inc (NASDAQ: ROKU) has received a price target increase from Needham & Company from $190 to $255 this past week
The stock price of Roku Inc (NASDAQ: ROKU) has received a price target increase from Needham & Company from $190 to $255 this past week. Roku — which is a digital streaming device and media company — has seen its install base grow rapidly especially during the pandemic.
Needham & Company managing director Laura Martin maintained a “Buy” rating on Roku. And Martin noted that the growth of the installed base should drive higher monetization for the company as advertising budgets increase as well.
In Martin’s research report, it said that Roku could potentially hit 80% of all connected TV users by the end of the year according to data from eMarketer.
“By implication, if any new OTT service wants to launch in the US, it must be distributed by Roku to be successful,” wrote Martin in the note via Benzinga. “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.”
Needham is not the only financial firm that increased the price target of Roku recently. Deutsche Bank issued a “Buy” rating and upped the price target from $185 to $235 this week. And Bank of America also issued a “Buy” rating for Roku with a price target increase from $190 to $227.
Disclosure: I have a small position of Roku in my stock portfolio.