Roku Shares Get Antoher Price Target Hike and a Downgrade

12:35 04/05/2019

KeyBanc Capital Markets analyst Evan Wingren believe Roku's ROKU  price could still go higher. The analyst has given the streaming maker a price target hike this week and also reiterated an 'outperform' rating.

Wingren has lifted his price target from $63 to $76 on shares and wrote in a research report that KeyBanc's Key First Look database of more than 13,000 shows that Roku's platform customer base rose 79 percent year over year through March 17. This growth is compared to the 64% in the fourth quarter.

According to Wingren, the checks suggest acquisition and engagement within the Roku platform remains strong and higher user interaction represents a 'bullish sign for the value of the platform.'

Wingren believes that Roku's strong reach, data and ad stock are likely to continue attracting premium monetization rates compared to 'linear and lower quality' over-the-top inventory elsewhere.

The analyst is also not showing much concern about Apple announcing its video plans. Wingren says Apple's plans are on 'repackaging' of existing content as well as a 'light' slate of original programming. ' Seeing this, coupled with its lagging market position in smart players, we're unsure if anything is incrementally competitive with Roku,' he wrote.

Shares of Roku have exploded well over 100% this year so far but tumbled after Guggenheim downgraded the strock and lowered its target from to $72 from $77. Apparently Amazon is looking to expand its streaming service.

According to a report from Cheddar, Amazon is seeking million of dollars from advertisers to help grow its Fire TV platform to compete with Roku and Pluto TV.

'We believe that the Apple video product unveiled on March 25 represents an additional risk to Roku’s active user base (even as the platform includes The Roku Channel) while Amazon’s and Viacom’s greater pushes into advertising video on demand (AVOD) are increasing competition,' Guggenheim said in a note Thursday.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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