Roku Inc. (ROKU) shares were rising Monday after analysts at DA Davidson upgraded the media streaming service on the belief that the pause in the U.S.-China trade war will benefit the company.
The firm said it believes that the trade war was a significant near-term risk to the company's shares and with that threat off the table the company's future is brighter.
Roku was upgraded to "buy" from "neutral" with a $49 price target that was unchanged. Roku shares rose 3.5% to $42.17 on Monday.
Additionally, the firm is bullish on Roku because it believes that outside threats from streaming competitors like Amazon.com Inc. (AMZN) already are priced into shares.
Stocks jumped globally Monday, Dec. 3, with U.S. equity markets up triple digits, after the U.S. and China came to an agreement over the weekend to suspend the trade war between the world's two largest economies for at least 90 days.
The White House said that it will hold off on increasing tariffs that were set to kick in on Jan. 1, for at least 90 days while the two sides negotiate.