Why Roku Stock Popped Today
Shares of Roku (NASDAQ: ROKU) have popped today, up by 5% as of 12:40 p.m. EST, after a Wall Street analyst increased its price target on the stock. Morgan Stanley boosted its valuation estimate on Roku shares from $110 to $150 while remaining bearish overall.
Analyst Benjamin Swinburne reiterated an underweight (equivalent to sell) rating on the streaming TV technology company, after initially downgrading Roku shares nearly a year ago over valuation concerns. The analyst expects Roku to grow its gross profits at a compound annual growth rate (CAGR) of approximately 30% over the next three years, and the price target is based on a valuation multiple of 18 times expected gross profits for 2022.
Image source: Roku.
Source Fool.com
