By Christiana Sciaudone
Investing.com — 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 Investing.com 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.
https://www.investing.com/news/stock-market-news/roku-rallies-on-streethigh-price-target-as-quibi-talks-underway-2380259 over the past 12 months as we’ve been stuck at home, streaming to our heart’s content.
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