Why Roku Stock Soared Today
Shares of Roku (NASDAQ: ROKU) have soared today, up by 12% as of 1 p.m. EDT, after Berenberg initiated coverage of the streaming TV company with a buy rating. The firm assigned a price target of $137, representing about 21% upside from yesterday's close.
Berenberg suggests that Roku is uniquely positioned to benefit from ongoing cord-cutting, as well as intensifying competition in the streaming wars, since Roku is an agnostic tech platform that offers a wide variety of over-the-top (OTT) streaming services. The COVID-19 pandemic is hurting the advertising market -- which Roku conceded earlier this week -- but those headwinds are expected to be short-term in nature.
Image source: Roku.
Source Fool.com
