Sun. Jul 21st, 2019

Shares of Roku Continue to grow after their Update

As KeyBanc Capital Markets announces to raise its price target on Monday for the provider of streaming services, the shares of Roku Inc. rise by 7%.

Evan Wingre, an analyst at Keybanc rose the stock price target of Roku from 63 U.S. dollars to 76 U.S. dollars per share, having an overweight rating once again. Mr. Wingren comes out as a very confident person saying that the users of Roku are increasingly utilizing their platform for purchasing extra content. He further continued and highlighted that this constant user engagement is a “bullish sign for the sign value of the platform.”

Apple released its brand new Apple streaming service last week during a keynote event. AppleTV+ will be allowing the subscribers that pay for it to enjoy media content from many different streams like HBO, Starz, and SHOWTIME. This announcement by Apple has sent the stock of the providers of streaming service to a relatively higher level than before.

This new television streaming service of Apple will directly be competing with some of the major providers like Disney and Netflix. Wingren, however, said that he was not concerned for Apple in this regard. He further noted the delayed entry of Apple into the market of streaming along with its combination of attention on repackaging the already available content shall make it very difficult to compete for Apple.

Apple’s “competitive impact likely [is] minimal. Apple’s video strategy highlighted a relatively light original content offering and repackaging of existing content,” Wingren wrote.

Wingren further highlighted the partnership of Roku and Adobe and said that he believes it is going to bolster the position of Roku in the advanced marketing and advertising sector.

“We recommend owning ROKU. We see it as a unique platform play on the growth in long-form, streaming video, with a strong competitive position and improving fundamentals,” wrote Wingren.

Currently, Roku’s shares have risen by almost 124.48 percent since the year-to-date.