Roku (NASDAQ:ROKU) stock got a boost on Tuesday following an upgrade from Oppenheimer.
The upgrade from Oppenheimer to the stock includes an increase for the stock’s rating and as well a price target. The rating upgrade takes ROKU stock from a “Perform” rating to an “Outperform” rating. The new price target for the stock is sitting at $50. This is about a 15% increase to the stock’s closing price on Monday.
Oppenheimer analyst Jason Helfstein is behind the upgrade for the stock. He believes that the company is set to see major growth due to the launch of its Roku Channel. The analysts says this could result in revenue growth of $19 billion for the company.
“The rapid adoption of The Roku Channel gives us incremental confidence in the channel’s ability to garner viewership on other platforms, such as Samsung, allowing Roku to monetize a broader portion of the OTT ecosystem than we had previously assumed was possible,” Helfstein said in a statement obtained by CNBC.
The recent upgrade to the stock from Oppenheimer isn’t actually the first time it had done that this year. A little over three months ago the firm upgraded the stock from an “Underperform” to a “Perform” rating. At the time, the firm said that it saw strong growth potential in the company.
Oppenheimer’s shift in stance on the stock has to do with the Roku Channel. That’s what resulted in its original change back in March. It’s also the reason behind the company’s further upgrade to the stock today, The Motely Fool notes.
ROKU stock was up 5% as of Tuesday afternoon, but is down 16% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
