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Roku Share-Price Target at Wall Street High $255 at Needham

Roku's installed base “is growing rapidly during covid-19," said investment firm Needham, which set its price target at a Wall Street high.

Roku  (ROKU) - Get Roku, Inc. Class A Report shares rose Thursday after Needham analyst Laura Martin lifted her share-price target on the streaming platform to $255 from $190, maintaining her buy rating.

The new target is a Wall Street high, Bloomberg reports.

Roku recently traded at $226.75, up 6.7%. The shares had soared 59% year to date through Wednesday. The new price target indicates 20% potential upside for the stock.

A “myriad” of recent data indicate strong third-quarter earnings, she said, according to The Fly. 

That includes an installed base that “is growing rapidly during covid-19, which should drive higher monetization as advertising demands,” Martin wrote in her commentary, cited by Bloomberg.

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Roku has a built-in advantage, she said. Any new streaming service “must be distributed by Roku to be successful.”

The San Jose, Calif., company also benefits from the trend toward advertising-based video on demand and away from subscription VoD, she said. Roku should see heightened usage as consumers cut the cord, moving to streaming instead of traditional cable services, Martin said.

Last month, Roku unveiled an improved version of its high-end Roku Ultra streaming box, as well as an integrated soundbar/streaming device called the Streambar.

The company also launched a new version of Roku OS (Roku OS 9.4), which among other things adds support for Apple’s  (AAPL) - Get Apple Inc. (AAPL) Report AirPlay 2 and HomeKit protocols.

In addition, Roku is launching iOS and Android  (GOOGL) - Get Alphabet Inc. Class A Report apps for its ad-supported streaming service, Roku Channel. A Roku account is needed to stream content from the apps, but Roku hardware isn’t.

Roku Ultra, list-priced at $100, is getting an improved Wi-Fi radio that’s said to deliver up to 50% more range, as well as Dolby Vision and Bluetooth support.