The stock gained 6.32% to $114.77 in trading Wednesday.
Nollen raised his price target on Roku to $130 from $110, which implies a 20% increase Roku's closing price Tuesday of $108. The average price target on Wall Street is $129.93, according to Bloomberg. Forecasts range from $60 to $185.
"Roku has built a leading position in the U.S., and we believe its devices will find a ready market abroad," Nollen wrote in a note.
"While competition is real the playing field is big," Nollen said adding that he sees "powerful growth" in both connected TV devices and
Roku tumbled in late September after Pivotal Research Group initiated coverage on the stock with a sell recommendation amid a dramatic ramp-up in competition that it expects will drive the cost of add-on streaming devices like Roku to zero.
Pivotal Research analyst Jeffrey Wlodarczak said Comcast's (CMCSA - Get Report) move to free will materially reduce Roku's subscriber growth and average revenue per user opportunities, making the stock "dramatically overvalued," even following a recent selloff.
The stock got a mild boost earlier this week after it was announced two Walmart-branded Roku products would be hitting the shelves of the giant retailer in the coming weeks as part of an exclusive deal with Walmart (WMT - Get Report) .