|Bid||275.37 x 1000|
|Ask||275.45 x 800|
|Day's Range||270.77 - 278.78|
|52 Week Range||58.22 - 284.00|
|Beta (5Y Monthly)||1.77|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 11, 2021 - Feb 15, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||246.90|
Roku stock has doubled this year, but a BofA Global Research analyst still sees double-digit upside.
Streaming video hardware and software maker Roku Inc (NASDAQ: ROKU) has benefited over the months from people spending their time at home and recent momentum can be sustained even after a vaccine is available to the public, according to BofA Securities.The Roku Analyst: Ruplu Bhattacharya maintains a Buy rating on Roku's stock with a price target lifted from $260 to $310.The Roku Thesis: The COVID-19 pandemic accelerated the ongoing shift away from linear TV towards over-the-top (OTT) viewership and this certainly benefited Roku as its "fundamentals remain strong," Bhattacharya wrote in a note. But even in a post-COVID reality, streaming hours should remain above pre-COVID levels as consumers saw first hand the advantages of streaming video.Consumers have come to appreciate Roku's platform that offers more variety of content, freedom to choose their subscription offerings, and the ability to consume free content.Related Link: 3 Roku Analysts Recap 'Stellar' Q3On Roku's end, the ability to accurately gather customer data allows it to offer audience guarantees to ad buyers. Roku is also able to command a premium cost per mille (CPM).Looking forward to 2021, Bhattacharya said Roku will focus on building out its international business by following a similar game plan that worked in the U.S. Most notably, Roku will focus on building scale, driving engagement, and then monetizing the platform. The company should be able to grow Ad-Supported Video on Demand (AVOD) viewership as well as Ad spend in markets like Canada, the United Kingdom, Germany, and Spain.ROKU Price Action: Shares of Roku traded around $274.62 publication time.Latest Ratings for ROKU DateFirmActionFromTo Nov 2020B of A SecuritiesReiteratesBuy Nov 2020NeedhamMaintainsBuy Nov 2020RosenblattMaintainsBuy View More Analyst Ratings for ROKU View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Williams-Sonoma CEO: 'We Sit In A Very Good Place Right Now' * Piper Sandler Highlights Continued Foot Locker Store Closures In Downgrade(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Covid-19 has been responsible for the acceleration of many trends. Among them is the move from linear TV to OTT services, what is known as cord cutting. The sector’s leader, Roku (ROKU) has been a prime beneficiary, with shares rising 107% year-to-date. But Roku's success in the year of Covid-19 sets it up to continue reaping the rewards even in a post-pandemic world. So much so that at least one Roku bear is capitulating; Pivotal analyst Jeffrey Wlodarczak upgraded Roku from Sell to Hold, while boosting the price target from $75 to $240. (To watch Wlodarczak’s track record, click here)Nevertheless, and even though the rating is not yet a Buy, it is a significant turnaround in sentiment based on several reasons which invalidate Wlodarczak’s previous bearish Roku thesis. Or as the analyst puts it: “When you find yourself in a hole, stop digging.”“Recall our original 4Q 2019 Sell rating was premised on valuation and the likely emergence of significant competition in 2021,” the 5-star analyst reminded investors. “But the unfortunate Covid-19 pandemic appears to have accelerated [ROKU’s] lead (and pushed back competitive responses) with the potential for that lead to be sustainable especially as the platforms build global scale.”Amazon’s Fire TV remains Roku’s only current serious rival for the DTC (direct to consumer) streaming crown, and Wlodarczak believes other potential contenders such as Comcast/Cox Flex failed to grasp the opportunity aggressively enough. The result of which is now a two horse (streaming) race. It is worth remembering, however, that Fire TV is one amongst many Amazon initiatives, while Roku is focused solely on the streaming market.And that’s not all Roku has going for it. Add into the mix Liberty Media Chairman John Malone’s bullish comments on Roku’s path for future growth, the anticipated addition of HBO Max, – the only heavyweight streaming service missing from Roku’s platform - the “clear inevitable decline of traditional PayTV,” and Roku’s likely “materially too conservative” Q4 guidance, and it is easy to understand why Wlodarczak is changing his tune.So, that’s Pivotal’s take, what about the rest of the Street’s view on Roku’s prospects? Based on 12 Buys, 6 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. However, most analysts are still playing catch up with Roku’s share price, and the Street expects nearly 11% downside, as the $247.26 average price target indicates. (See Roku stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.