Streaming platform Roku, Inc. (ROKU) recently announced that it will launch an exclusive app for Shopify merchants to easily and effectively build TV streaming advertising campaigns. The app is scheduled to launch in advance of the holiday season.
Following the news, shares of the company appreciated 1% on Tuesday. However, it pared its gains slightly to close at $316.90 in extended trade.
The app, which is primarily aimed at businesses having limited advertisement budgets, is expected to aid revenues by catering to the precise audience for the businesses.
The Senior Director of Ad Revenue Strategy at Roku, Jared Lefkowitz, said, “This is a powerful and simple advertising opportunity for SMBs to reach customers at scale, just as Fortune 500 brands have done for decades. We’re excited to launch an easy-to-use solution for Shopify merchants that drives brand awareness on the biggest screen in the home.” (See Roku stock chart on TipRanks)
Recently, Stephens analyst Nicholas Zangler reiterated a Buy rating on the stock. The analyst’s price target of $475 implies upside potential of 48.9% from current levels.
According to the analyst, Amazon’s plans to launch its own branded smart TVs with aggressive points is not expected to dent Roku’s growth prospects as Roku OS comes in almost 38% of all smart TV unit sales.
Consensus among analysts is a Strong Buy based on 14 Buys, 1 Hold and 1 Sell. The average Roku price target of $490.20 implies upside potential of 53.7% from current levels.
Roku scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 64.6% over the past year.
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