Roku shares got a price target hike to a Wall Street-high of $410 at Benchmark, on optimism around the addition of HBO Max on the streaming platform.
Benchmark analyst Daniel Kurnos boosted his one-year price target to $410 from $300. Kurnos expects a “significant upside surprise in 4Q.”
On Wednesday, Roku and WarnerMedia announced a deal to include HBO Max to the Roku platform. Roku users can subscribe directly on their Roku device to access all of HBO Max content (and HBO Max app), at a cost of $15 a month.
Referring to the deal as “largely the expected outcome”, Kurnos suggested that it demonstrates Roku’s negotiating power in the streaming-video industry.
Kurnos has a buy rating on Roku.