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Needham's bullish note on Roku Inc. (ROKU)  wasn't enough to keep investors from selling the stock Tuesday, July 24. 

Roku shares fell 5.8% to $46.74 on Tuesday, a day after analysts at Needham gave the media streaming facilitator a $60 price target. 

Needham analyst Laura Martin increased her price target from $50 a share on her belief that the company should benefit from increased competition in the streaming space between Netflix Inc. (NFLX) , Inc. (AMZN)  and Walt Disney Co. (DIS) because Roku gets a cut of revenue when consumers sign up for additional services through its device. 

Roku shares have risen 45% over the past three months. 

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Needham's price target on Roku is the highest on Wall Street. But that valuation is justified because Needham said it "expects to be sold before it triples again."

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