If there is one thing consumers around the world have collectively gravitated to during the coronavirus pandemic, it is streaming content.
That has generally been good news for streaming content provider Roku (ROKU) - Get Report, which on Wednesday received an out-of-the-gate buy rating from analysts at Deutsche Bank, who see users continuing to tune in to the platform.
Deutsche Bank analyst Jeffrey Rand initiated coverage of Roku with a buy rating on the stock and a one-year price target of $185, less than a week after the streaming-media company posted better-than-expected revenue for its most recent quarter.
In its quarterly earnings results released last week, Roku said users streamed 14.6 billon hours of content in the second quarter, helping it post better-than-expected revenue despite weakness in the television advertising market. It also said it sees its ad business rebounding over the long term.
That was enough for Deutsche Bank and others to express confidence in the company’s outlook. Analysts at Susquehanna last week raised their price target on Roku shares to $185 from $145, while analysts at Needham & Company lifted their price target to $190 from $150.
Shares of Roku were up 3.65% at $151.75 in trading on Wednesday. The company's stock soared more than 300% in 2019.
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