Roku stock gains after KeyBanc chimes in with bullish rating

Shares of Roku Inc. are up 5% in Tuesday trading after KeyBanc Capital Markets analyst Justin Patterson initiated coverage of the streaming-media company with an overweight rating and $228 price target. He argued that Roku is “under-monetized” compared to its peers given the size of the company’s audience and that Roku could see faster revenue growth than is currently modeled by consensus forecasts. Patterson sees opportunities for the company to grow its ad-supported channels, deliver superior targeting, and improve its pricing relative to its advertising load. He also expects that the company will be able to grow its international business by entering new markets. He estimates that the company currently gets more than 85% of its revenue from the U.S. Roku shares have gained 54% over the past three months as the S&P 500 has risen 11%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit for more information on this news.

Read Full Story

Latest posts by Market Watch (see all)

Be the first to comment

Leave a Reply

Your email address will not be published.