Is Roku About to Zoom 32% Higher?

Roku (NASDAQ: ROKU) is a seriously undervalued stock that has the potential to produce double-digit returns. At least that's the view of Wells Fargo analyst Steven Cahall, who on Tuesday initiated coverage of the company's stock with a resounding overweight recommendation and a $215 per share price target. That figure is 32% above Roku's current level.

Cahall is impressed with Roku's ability to draw revenue from its user base. As that base is growing robustly, the company is benefiting. In its most recently reported quarter, both revenue and the number of active accounts were up by just over 40% year over year. This was especially heartening given the pullback in ad spending across the media landscape in the wake of the coronavirus pandemic.

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Source Fool.com