Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst

It’s all falling into place for Roku (ROKU). Actually, that’s not quite an appropriate description of the streaming platform’s prowess. For Roku, everything was already going swimmingly during the pandemic; Read More... The post Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst appeared first on TipRanks Financial Blog.

Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst

It’s all falling into place for Roku (). Actually, that’s not quite an appropriate description of the streaming platform’s prowess. For Roku, everything was already going swimmingly during the pandemic; the coronavirus provided a meaningful tailwind to streamers as the stay-at-home mandates resulted in elevated viewing figures and an uptick to new subscribers.

However, any worries that the numbers would drop as society returns to normal patterns are misplaced, according to Deutsche Bank analyst Jeffrey Rand. Following the analyst’s latest industry checks, Rand came away confident that streaming viewership will “hold up well in 2Q despite economies reopening.”

As has been noted many times, the pandemic has accelerated the shift from linear TV to streaming services - what is commonly known as cord cutting – a trend already prevalent before Covid hit. Along with a change in consumers’ viewing habits, advertising budgets are increasingly being siphoned away from linear TV services to streamers, a process Rand’s latest checks confirm is still at play in Q2 and which the analyst finds “unsurprising.” “With linear TV viewership continuing to decline,” the analyst added, “We see no signs of this trend reversing going forward.”

The good news for Roku is that while last year’s economic downturn resulted in the slashing of advertising budgets, these are now “starting to reach or exceed” pre-pandemic levels. What’s more, advertisers are also increasingly cottoning on to the “benefits of advertising on streaming.” Rand highlights a conversation with a contact at a consumer staples company who said the brand is “finding the ability to target certain people is far superior for streaming vs. linear TV and only advertising on linear TV no longer provides the reach needed.”

What all this also means, is that investors could be due for a pleasant surprise when the quarter’s results are in.

“With both viewership and advertising trends leaning positive as we approach the end of the quarter, we believe risks are weighted to the upside for 2Q results,” Rand summed up. “Longer-term, we remain bullish on the transition to streaming and Roku's competitive positioning in the market and believe that Roku should continue to trade at a premium valuation.”

To this end, Rand rates ROKU shares a Buy, while his $500 price target suggests ~20% upside from current levels. (To watch Rand’s track record, )

The rest of the Street agrees. Based on 14 Buys, 2 Holds and 1 Sell, the stock has a Strong Buy consensus rating. The average price target, though, is a more modest one; at $443.27, the figure implies shares will add 5% in the year ahead. (See Roku stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst appeared first on TipRanks Financial Blog.

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Analysts' Opinions Are Mixed on These Materials Stocks: Cameco (CCJ) and MAG Silver (MAG)

Analysts have been eager to weigh in on the Materials sector with new ratings on Cameco (CCJ – Research Report) and MAG Silver (MAG – Research Report). Cameco (CCJ) In a report released today, Andrew Wong from RBC Capital maintained a Sell rating on Cameco, with a price target of C$17.00. The company's shares closed last Wednesday at $19.71. According to TipRanks.com, Wong is a 4-star analyst with an average return of 18.9% and a 58.8% success rate. Wong covers the Basic Materials sector, focusing on stocks such as Largo Resources, NexGen Energy, and CF Holdings. Currently, the analyst consensus on Cameco is a Moderate Buy with an average price target of $19.36. See today’s analyst top recommended stocks >> MAG Silver (MAG) In a report released today, Cosmos Chiu from CIBC maintained a Hold rating on MAG Silver, with a price target of C$33.00. The company's shares closed last Wednesday at $21.92. According to TipRanks.com, Chiu is a 4-star analyst with an average return of 12.5% and a 51.4% success rate. Chiu covers the Basic Materials sector, focusing on stocks such as Osisko Gold Royalties, Fortuna Silver Mines, and Hecla Mining Company. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for MAG Silver with a $23.68 average price target. TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities. The post Analysts' Opinions Are Mixed on These Materials Stocks: Cameco (CCJ) and MAG Silver (MAG) appeared first on TipRanks Financial Blog.

Analysts have been eager to weigh in on the Materials sector with new ratings on Cameco (CCJ – Research Report) and MAG Silver (MAG – Research Report).

Cameco (CCJ)

In a report released today, Andrew Wong from RBC Capital maintained a Sell rating on Cameco, with a price target of C$17.00. The company's shares closed last Wednesday at $19.71.

According to TipRanks.com, Wong is a 4-star analyst with an average return of 18.9% and a 58.8% success rate. Wong covers the Basic Materials sector, focusing on stocks such as Largo Resources, NexGen Energy, and CF Holdings.

Currently, the analyst consensus on Cameco is a Moderate Buy with an average price target of $19.36.

MAG Silver (MAG)

In a report released today, Cosmos Chiu from CIBC maintained a Hold rating on MAG Silver, with a price target of C$33.00. The company's shares closed last Wednesday at $21.92.

According to TipRanks.com, Chiu is a 4-star analyst with an average return of 12.5% and a 51.4% success rate. Chiu covers the Basic Materials sector, focusing on stocks such as Osisko Gold Royalties, Fortuna Silver Mines, and Hecla Mining Company.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for MAG Silver with a $23.68 average price target.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

The post Analysts' Opinions Are Mixed on These Materials Stocks: Cameco (CCJ) and MAG Silver (MAG) appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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