Roku Soars After Agreeing to Carry Comcast's Peacock Stream - TheStreet

Roku Soars After Agreeing to Carry Comcast's Peacock Stream

Roku soars after the streaming platform announces a deal to carry NBCUniversal’s Peacock streaming service on its devices.
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Roku  (ROKU) - Get Report soared Monday after the streaming platform announced a deal to carry NBCUniversal’s Peacock streaming service on its devices.

NBCUniversal is owned by Comcast  (CMCSA) - Get Report.

Analysts reacted positively to the news for both Roku and Comcast. Roku will receive “top-end premium inventory and subsequent pricing leverage on its [connected TV] premium ad bundles,” in addition to negotiating power with other major networks, said Rosenblatt Securities.

The firm has a buy rating and $195 price target on shares of Roku.

Analysts at Benchmark said the deal could help Peacock. Benchmark has a buy rating and $54 price target on Comcast.

Roku recently traded at $183.98, up 14.65%, and has climbed 37% this year. Comcast recently traded at $43.69, down 3.47%, and has slid 3% year to date.

Peacock provides access to more than 20,000 hours of on-demand movies and shows, live news and sports programming from NBCUniversal and beyond. It offers free and paid versions

“Audience demand for compelling content is fueling a surging shift to streaming for a majority of American households today,” Tedd Cittadine, vice president of content acquisition for Roku, said in a statement. “We’re focused on delivering the kind of high-quality news and entertainment content Roku users want and love, and we’re excited to welcome Peacock.”

Last week, KeyBanc initiated coverage on Roku with an overweight rating and $228 price target.

Investors underappreciate the competitive moat and monetization potential of the streaming-tech company, KeyBanc analysts said. They expect “faster revenue growth than consensus contemplates," said analyst Justin Patterson.