Wednesday, February 26, 2020 9:18:15 AM
Even for the fortunate ones not directly affected by the rapidly spreading coronavirus, try as you might, it is impossible to ignore the impact it is having on all facets of life across the globe right now; from the obvious and most pertinent health issues, to travel and across most industries, global supply chains and the world’s major economies have been negatively affected. The stock markets, of course, have been hit, too; Along with international markets tumbling over the past few days, all 3 major US indexes posted sharp losses this week.
The way the cookie crumbles, though, means that some will always be better positioned than others to cushion the blows. In what often feels like a macabre twist of fate, some companies actually stand to gain from the disruption, while others will lose share.
Taking this into account, 5-star Needham analyst Laura Martin recently assessed 2 names under the firm’s coverage on which the recent outbreak could, or is having a positive effect. After using TipRanks’ Stock Screener tool, we found out each boasts a substantial upside potential from the current share price. We’re talking more than 25% here. Let's take a closer look.
Roku (ROKU)
Is Roku the new Amazon? Or maybe Netflix? These are the sort of questions that have been bandied about recently, following what can only be described as a market trouncing performance. The streaming player leader was one of 2019’s star performers, with its share price appreciating by almost 350% over the year. Roku stock, though, is currently trading at 30% less than last summer’s all-time high. Is now the right time to pull the trigger on the streaming stalwart?
It is, according to Martin. The 5-star analyst counts a number of reasons why she believes “Roku has the best strategic position in AVOD.”
Roku currently takes share of 45% of US streaming homes, which amounts to 37 million users. As the Roku Channel sells 100% of content it gets from nearly every AVOD app on its platform, it implies “Roku has better data than any single app.” Take this one step further, and as data points increase, ad targeting gets more finely tuned. “Any competitor with fewer or lower quality data points than Roku quickly falls behind making it nearly impossible to catch up with Roku over time,” Martin states. Secondly, Martin argues, integrated hardware (such as Roku TVs and sticks) and software (i.e., advertising revenue) “creates a stronger barrier to entry than just owning software (ie, an AVOD app) alone.”
Martin argues her bullish case for Roku could further be bolstered by, ironically, the coronavirus. The 5-star analyst states that should the virus spread any further in the US, folks will stay in, watch more TV and therefore, raise “the number of hours viewed and ad units available for Roku to sell above our current revenue and profit projections.”
As a result, Martin reiterates a Buy rating on Roku stock along with her price target of $200. Should the target be met, possible gains of 68.5% could be in the cards. (To watch Martin’s track record, click here)
Looking at the consensus breakdown, Roku’s 7 Buys, 2 Holds and 2 Sells coalesce into a Moderate Buy consensus rating. At $153.5, the average price target could present possible upside of 29% over the next 12 months.
https://finance.yahoo.com/news/2-stocks-benefit-coronavirus-outbreak-140022684.html
Recent ROKU News
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 05/10/2024 04:22:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/09/2024 11:11:24 PM
- Roku Is the Lead-In to Television • Business Wire • 04/30/2024 09:30:00 PM
- Roku and iSpot Announce Streaming Audience Measurement Partnership • Business Wire • 04/30/2024 01:00:00 PM
- Roku and The Trade Desk Announce New Data-Driven TV Streaming Partnership • Business Wire • 04/30/2024 12:00:00 PM
- Exxon Mobil Net Profit Drops 28% to $8.22 Billion, Atlassian Surprises with Revenue Boost and Co-CEO Exit, and More in Earnings • IH Market News • 04/26/2024 11:47:51 AM
- Roku Releases First Quarter 2024 Financial Results • Business Wire • 04/25/2024 08:05:00 PM
- U.S. Futures Drop in Pre-Market Trading as Tech Stocks Plunge After Meta Issues Gloomy Forecast • IH Market News • 04/25/2024 11:53:54 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Roku to Announce First Quarter 2024 Financial Results on April 25, 2024 • Business Wire • 04/11/2024 08:05:00 PM
- Your TV Just Got Better with New Updates from Roku • Business Wire • 04/10/2024 01:05:00 PM
- Roku Pro Series Arrives with Elevated Features and Design in a TV Made for Streaming • Business Wire • 04/10/2024 01:00:00 PM
- With Roku’s All-New NBA FAST Channel and NBA Zone, Basketball Fans Are at the Center of the Action • Business Wire • 04/03/2024 03:00:00 PM
- Cross Screen Media and Roku Expand Partnership to Enable Cross-Channel Measurement for Local Agencies • PR Newswire (US) • 03/19/2024 11:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 09:41:18 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/08/2024 09:41:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:40:04 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:39:21 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:39:10 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:38:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:36:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:35:52 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 01:34:59 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 09:40:16 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 09:31:03 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM