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Roku Rises as Deutsche Suggests Investors Buy the Recent Dip

'Transition to streaming continues, and we are expecting strong first-quarter results' for Roku, Deutsche Bank says, affirming the stock at buy.
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Roku  (ROKU) - Get Roku Inc. Report shares rose Thursday after Deutsche Bank analyst Jeffrey Rand said the streaming platform’s stock is a solid buying opportunity after its recent slide.

He affirmed his buy rating and $500 price target for the San Jose, Calif., company.

Roku recently traded at $367.38, up 1.5%. It had slid 23% since Feb. 16, as investors took profits. The stock has still quadrupled over the past year. Investors have been enthusiastic about consumers cutting the cord -- abandoning traditional cable-TV subscriptions -- and the resulting rise of streaming services.

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“Transition to streaming continues, and we are expecting strong first-quarter results,” Rand wrote in a commentary.

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“While many growth-oriented tech companies have faced challenges in the current environment, with the transition to streaming continuing at a rapid pace, we see the recent pullback in Roku's stock as a good buying opportunity.”

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Also, “our checks indicate that ad demand for connected TV has been strong in the quarter. Linear TV viewership and ad inventory remain down in Q1, and this has benefitted CTV as advertisers search for ad inventory and viewers,” Rand said.

“We view [the first-quarter] earnings as a potential positive catalyst for the stock, as CTV trends remain positive and investors shift their focus back to Roku's vast growth opportunity and away from the interest rate environment.”’s founder, Jim Cramer, offered an analysis of Roku on RealMoney Wednesday.

Roku garnered positive reports from Vertical Group and Truist analysts last week. “We see upside to platform gross profit,” Truist analyst Matthew Thornton wrote in a commentary. He upgraded the stock to buy from hold.