Roku Rally has Much More to Go as Revenue to Rev Up By

© Reuters.

By Christiana Sciaudone —  Roku (NASDAQ:)’s rallying on a JPMorgan (NYSE:) boost with a Street-high price target. 

Analyst Cory Carpenter initiated coverage on the stock with a buy-equivalent rating and a price target of $475, above the second-highest of $460 from Macquarie, according to StreetInsider and data.  

“Roku is the leading TV streaming platform in the U.S. by hours streamed, with ~51M active accounts and users streaming nearly 60 billion hours of content in 2020,” Carpenter said in a note, according to StreetInsider. “Roku is well-positioned as TV viewing increasingly shifts to streaming, with Roku’s platform benefitting from increased demand across SVOD services (i.e., Disney+), AVOD (i.e., The Roku Channel), and TVOD (i.e., Trolls World Tour).”

JPMorgan sees Roku having a significant advertising opportunity, with streaming accounting for about 30% of TV viewing time for 18-to-49 year-olds in the U.S. and around 40% of viewing time for 18-to-34 year-olds, but only an estimated 8% to 9% of TV ad budgets. 

The firm sees revenue growth of 25% year-over-year through 2024, with profit also improving.

over the past 12 months as we’ve been stuck at home, streaming to our heart’s content.


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