Roku Inc (NASDAQ:ROKU) stock was skyrocketing today on a price target increase from Needham & Company.
The price target increase comes from Needham & Company analyst Laura Martin. Martin increased her price target for ROKU stock to $50. This is a major bump up from the analyst’s previous price target of $28 for the stock. ROKU stock was sitting at $39.47 when the markets closed on Friday.
Needham & Company’s recent price target increase for ROKU stock is the result of a strong belief that Roku Inc carries qualities that can make it stronger than it is now. For example, the firm notes that the company benefits from various streaming services.
The firm claims that efforts from other companies, such as Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOG,GOOGL), to create original content only benefits Roku Inc. This is because the set-top box acts as a way to stream this content without having to puts its own funds at risk making it.
Martin also notes that a good comparison to ROKU stock is Netflix, Inc. (NASDAQ:NFLX). However, she points out the stock is cheaper and doesn’t face as much risk as the streaming service, reports StreetInsider.com.
Interested in learning more about ROKU stock? You can follow this link to a see a list of pros and cons if you are considering investing in Roku Inc.
ROKU stock is up 11% as of Monday afternoon and is up 89% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
