Benchmark Offers Ideas on Roku Inc's (ROKU) Next Revenue Growth Legs

Benchmark analyst Daniel Kurnos reiterated a Buy rating and $550.00 price target on Roku Inc. (NASDAQ: ROKU) noting that shares are climbing off their recent lows, driven in part by the recent risk-on trade. However, in order to sustainably progress higher, the analyst thinks management needs to think out of the box and offers some ideas that could represent the next leg of growth over the coming 12 to 24 months:

1) More accurate ad targeting. If Roku is able to leverage the increasing amount of 1P data and enable advertisers turn it into custom creatives following a user off the original vertical channel, Roku could drive enhance ad yields further over time, which would drive better deal economics in a variety of ways.

2) Sports custom creatives. The analyst believes that now that the NFL in particular is proliferating across SVOD, Roku may be able to clip a coupon on future sports betting opportunities.

3) International. COVID likely slowed the international angle which remains a huge opportunity. The analyst believes that TRC still only penetrates ~30% of domestic pay TV households making this story an early growth contributor.

For an analyst ratings summary and ratings history on Roku Inc. click here. For more ratings news on Roku Inc. click here.

Shares of Roku Inc. closed at $340.13 yesterday.

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