Roku shares jumped around +4% Wednesday, following an increase in price target from Needham analyst Laura Martin.
Martin raised her price target to $120 from $85 – reflecting a +28% upside from the stock's current level. She reiterated her Buy rating on the stock.
Roku sells digital media players that allow customers to access Internet streamed video. The analyst emphasized that Roku has a leg-up from being an over-the-top “aggregation” platform versus a single streaming service. Martin indicated that the company could potentially have better pricing power in advertising because of unique amalgamation of streaming platforms and broader data on users. Roku streams 4,000 apps with advertising.
Roku shares have rallied almost +200% so far this year.