U.S. markets open in 7 hours 25 minutes
  • S&P Futures

    4,089.00
    +7.75 (+0.19%)
     
  • Dow Futures

    34,608.00
    +9.00 (+0.03%)
     
  • Nasdaq Futures

    12,060.00
    +17.75 (+0.15%)
     
  • Russell 2000 Futures

    1,896.00
    +8.50 (+0.45%)
     
  • Crude Oil

    80.17
    -0.38 (-0.47%)
     
  • Gold

    1,796.70
    +36.80 (+2.09%)
     
  • Silver

    22.56
    +0.78 (+3.58%)
     
  • EUR/USD

    1.0455
    +0.0047 (+0.45%)
     
  • 10-Yr Bond

    3.7030
    0.0000 (0.00%)
     
  • Vix

    20.58
    -1.31 (-5.98%)
     
  • GBP/USD

    1.2109
    +0.0047 (+0.39%)
     
  • USD/JPY

    136.0620
    -2.0180 (-1.46%)
     
  • BTC-USD

    17,119.71
    +250.87 (+1.49%)
     
  • CMC Crypto 200

    405.62
    +4.93 (+1.23%)
     
  • FTSE 100

    7,573.05
    +61.05 (+0.81%)
     
  • Nikkei 225

    28,226.08
    +257.09 (+0.92%)
     

Roku and Netflix surge after upbeat analyst reports

By Noel Randewich

(Reuters) - Shares of Roku Inc surged over 11% on Wednesday after Citi initiated coverage of the streaming video company with a "buy" rating, while Netflix Inc also rallied more than 11% and was on track for its largest one-day gain in three years.

Roku and Netflix are among several technology-related companies that have benefited as a result of the coronavirus pandemic, with people around the world spending more time at home.

Citi analyst Jason Bazinet started coverage of Roku with a $180 price target, compared with Wednesday's price of about $164.

In his research note published late on Tuesday, Bazinet pointed to strong subscriber growth and increased value per subscriber, in a trend he suggested would also benefit Netflix.

Also on Tuesday, Piper Sandler analyst Yung Kim published a survey that found most U.S. Netflix subscribers were willing to accept a price increase. Kim's survey also found that more subscribers planned to keep Netflix than other video streaming services after the COVID-19 crisis subsides.

Kim rates Netflix "overweight," with a $534 price target, below Wednesday's price of around $545.

Netflix's stock was set to close with its largest one-day gain since July 2017. Netflix's shares are up more than 60% year-to-date, while Roku has gained over 20%.

(Reporting by Noel Randewich in San Francisco; Editing by Matthew Lewis)