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) - Get Report , Amazon.com Inc. (AMZN) - Get Report and Walt Disney Co. (DIS) - Get Report 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.
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."