The shares of Roku Inc (NASDAQ:ROKU) have gone up by about 28% within the last month. However, Macquarie Research still asserts that the rally might be going on for over quite some time. Reports show that the firm initiated Roku with a $49 price target with an outperform rating.
Paul Golding while addressing clients on Thursday opined, “Disintermediation of television content and services leaves Roku in a position to capitalize on its role as a new-age intermediary. Roku stands to benefit from more ads thanks to connected TV viewership.”
A global marketing consultant firm, Magna has outlined that it expects the global digital ad spend to hit ~$100B next year and uphold the same momentum over a long period of time.
HPM Partners’ Jim Lebenthal stated that there was quite much to be admired in the stock even though it was rather an uphill task battling against other giant streaming platforms such as
Apple Inc (NASDAQ:AAPL) and Amazon.
Lebenthal says that the selling of the players is what generates a lot of money contrary to the thoughts of many who believe they are the set-top boxes. Even with that said, it is worth mentioning that there is usually great need to ramp up efforts in the building of a subscriber base.
The top official exudes confidence that there are very minimal chances that the company will get crushed by the competition soon. He says his position is volatile at this point in time. But, he believes in the thought of one being comfortable with that sort of volatility.
For over quite some time it has been a wild ride for the stock. Over the past six months, the share price of Roku has moved from about $56 in December down to $30 in April. On Thursday’s close, it rebounded to about $45.
A person well conversant with the matter believes Roku could easily rally to $50.
Market analysts are calling upon investors to move faster with the purchase of the Roku shares citing that the company is currently disrupting television with its streaming platform. Over the years it has been acting as an independent digital content distributor and is making plans to revamp its service delivery.