Roku Inc. (ROKU) PT Raised to 'Street High' $315 at Needham & Company

Needham & Company analyst Laura Martin raised the price target on Roku Inc. (NASDAQ: ROKU) to a 'Street High' $315.00 (from $255.00) while maintaining a Buy rating.

The analyst commented, "We believe COVID-19 dramatically reallocated consumer spending during 2020 so the best question for 2021 is which economic shifts are durable and persistent? We argue that ROKU benefits from long-term upside CTV (ie, digital video ads shown on a TV screen) trends such as: a) political ad spending upside; b) accelerated cord-cutting and 43mm streaming-only US homes; c) more streaming devices per home; d) $7B more upfront advertising available to CTV; and e) demographic shifts that force advertisers to adopt CTV faster. Roku generates revenue from both AVOD and SVOD, implying it is hedged regardless of which companies win the Streaming Wars. We raise our estimates and PT because we believe COVID pulled forward by 1-2 years key upside value drivers for Roku, which we discuss below."

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