Media giant Comcast Corporation (NASDAQ: CMCSA) will begin offering internet customers a free over-the-top box set, but one Roku Inc (NASDAQ: ROKU) analyst isn't worried about the new competitive landscape.
D.A. Davidson analyst Tom Forte maintained a Buy rating on Roku with an unchanged $185 price target.
Comcast's entry to the streaming video market comes with one notable concern, Forte said in a Thursday note. (See his track record here.)
Based on anecdotal experience and industry analysis, Comcast seldom, if ever, is seen as the "lowest cost provider" to the consumer, the analyst said.
In other words, the "free" cost of Comcast's new hardware device will be made up elsewhere through "hefty fees" for its connectivity, he said.
Investors looking for real value in the streaming landscape are much better off with a Roku device, Forte said.
"We recommend investors purchase shares and take advantage of yesterday's pull-back, down roughly 14% at the close."
Aside from Comcast, the streaming video industry is only in the "top of the third inning," as some of the world's largest tech giants like Apple Inc. (NASDAQ: AAPL) and media behemoths likes Walt Disney Co (NYSE: DIS) have yet to launch their products, the analyst said.
Roku shares were up 1.81% at $132.18 at the time of publication Thursday.
How Facebook, Comcast Just Shook Up The Streaming Video Wars
Guggenheim: Roku Growth Story Has More Fuel
Photo courtesy of Comcast.
Latest Ratings for ROKU
View More Analyst Ratings for ROKU
View the Latest Analyst Ratings
See more from Benzinga
- How Facebook, Comcast Just Shook Up The Streaming Video Wars
- Guggenheim: Roku Growth Story Has More Fuel
- Roku CEO: Our Technology Should Be Included In Half Of TVs
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.