tech
Roku is one of the big earnings winners of the day. Two major analysts see more to go
Roku should continue to rally as it pushes to gain more customers and increase its advertising revenue while benefiting from industry tailwinds, analysts say.
TL;DR
- Roku's stock rallied significantly after reporting first-quarter earnings that beat analyst expectations.
- Morgan Stanley and Bank of America maintained overweight/buy ratings and raised price targets to $150.
- The company reported $1.25 billion in revenue and $148.4 million in adjusted EBITDA for the March quarter.
- Roku's forecast for the second quarter also exceeded analysts' expectations.
- Analysts point to industry tailwinds, increased spending on sports, and demand-side partnerships as drivers of future growth.
- Political advertising related to midterm elections is expected to be a tailwind in the second half of the year.
- Roku's stock is up 12% year-to-date but still trades significantly below its all-time high.