Why Roku Stock Jumped on Wednesday
Shares of Roku (NASDAQ: ROKU) jumped as much as 9.7% higher on Wednesday morning, goosed by a rosy analyst report. By 11:15 a.m. EDT the media-streaming technologist's stock had settled down to a milder gain of 8.4%.
Citigroup analyst Jason Bazinet started covering Roku today with a buy rating and a price target of $180 per share. Citi expects Roku to beat the market over the next year or so, boosting the share price by approximately 22% from Tuesday's closing price. Bazinet argues that the stock should be worth roughly $330 per active account, far above the current economic value of $130 per account. He also sees Roku's user base expanding to 70 million accounts by the end of 2021.
Source Fool.com
