Roku Inc (ROKU)

[WebSlinger]

Roku stock gains after RBC upgrade

Shares of Roku Inc. ROKU, +4.92% were up 2.5% in after-hours trading Thursday after RBC analyst Mark Mahaney upgraded the stock to outperform from sector perform. He sees the stock as more attractive now that it's fallen about 31% from its recent highs, and he's also drawn to the company's strong positioning and fundamentals. "We believe the Crucial Combo (revenue growth + EBITDA margin) is key in helping to determine fundamental attractiveness in the small-cap 'net sector, and Roku has consistently had one of the highest scores in our coverage," Mahaney wrote. "We view Roku as one of the best derivative plays off of one of the strongest trends in 'net land: over-the-top/streaming, with the company being one of the best-positioned to take share of the very large, underpenetrated $70 billion TV ad spend opportunity." He upped his target on the stock to $155 from $107. Shares have lost 19% over the past month, while the S&P 500 SPX, +0.64% has dropped 1.4%.

https://www.marketwatch.com/story/roku-stock-gains-after-rbc-upgrade-2019-10-10?siteid=yhoof2&yptr=yahoo