Why Roku Crushed the Market on Wednesday
Roku (NASDAQ: ROKU) investors got a new jolt of optimism from an analyst on Wednesday. As a result, the company's shares closed more than 4% higher. This helped extend the stock's rally, which entered its third day following the company's release of dispiriting quarterly results.
The analyst in question is Citigroup's Jason Bazinet. Despite lowering his price target on Roku stock from $165 per share to $125, he's still resolutely bullish on the company. A key reason for this is that Bazinet believes the forces battering Roku's recent results were not of its making.
"We believe the recent topline weakness is a function of macro headwinds and does not reflect execution issues at the firm," he wrote in his latest note on the company. "In addition, we note that Roku has $15 of net cash per share (about 20% of the firm's equity value)," he added.
Source Fool.com
