Shares of Roku (NASDAQ: ROKU) gained in pre-market trading on Friday after the connected-TV platform company was upgraded by top-rated Susquehanna analyst Shyam Patil to a Buy from a Hold with a price target of $75 on the stock. The analyst’s price target implies an upside potential of 25% at current levels.
The analyst upgraded the stock as he believes that Roku could stand to benefit from the connected TV trend. Patil commented, “Despite near-term noise, we believe the long-term connected TV opportunity remains intact and continue to see Roku as a prime beneficiary of the secular shift of linear budgets. In fact, we see most of the opportunity as still in front of the company.”
Patil added that his industry checks indicated that “the broader CTV market is generally healthy and should see a tailwind” with a majority of ” U.S. advertisers expect to prioritize connected TVs, or a combination of CTV and linear.”
Analysts are cautiously optimistic about ROKU stock with a Moderate Buy consensus rating based on 10 Buys, eight Holds and four Sells.
