Roku, Inc. Stock Soars on Specious Netflix Comparison
Roku (NASDAQ: ROKU) had a pretty great Cyber Monday, although it had nothing to do with shopping. Shares booked gains of 18% today thanks in large part to a bullish analyst note. Needham analyst Laura Martin nearly doubled her price target on Roku, from $28 to $50, while maintaining a buy rating.
Martin cites Roku's valuation, strategic position, active account growth, monetization gains, and growing moat as the basis for the price-target boost. It's absolutely true that Roku is executing incredibly well right now in its ongoing transition to becoming a platform company, with active accounts and average revenue per user (ARPU) all marching higher, but there's a pretty glaring hole in the analyst's rationale: a specious comparison to Netflix (NASDAQ: NFLX).
Image source: Roku.
Source: Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 33 Buy predictions and 6 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 51.69% for Roku compared to the current price of 61.31 €.
