Roku Inc. (ROKU) PT Raised to 'Street High' $200 at Needham & Company

Needham & Company analyst Laura Martin raised the price target on Roku Inc. (NASDAQ: ROKU) to a 'Street High' $200.00 (from $150.00) while maintaining a Buy rating.

Martin believes Roku should be valued as an internet aggregator, similar to YouTube in the video space, iOS and Android in the mobile space, and Facebook.com in the social network space.

The analyst commented, "Roku was our top stock pick for 2019 because its valuation is based on aggregation platform economics, similar to iOS and Android in mobile, we believe. In 2020, Roku’s key upside valuation driver will be accelerating subscription SVOD revenues, which lowers investment risk, we believe. Additionally, Disney+, Apple+, Peacock/CMCSA and HBOMax/AT&T should accelerate customer acquisition spending, and Roku is a key beneficiary owing to its installed base of 32mm US connected-TV homes. In the US, we believe YouTube is the winning aggregator of user-generated videos and Roku will be the winning aggregator of TV and films. We calculate that YouTube’s U.S. revenue is valued at over $100B. We raise our Roku PT to $200, from $150, based on falling risk."

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Legence Corp (LGN) PT Lowered to $100 at BTIG
• Birkenstock Holding plc (BIRK) PT Raised to $44 at Morgan Stanley