Roku Will Be Bought for a “Large Premium”

Needham maintained its “buy” rating and $100 price target on ROKU

Roku Inc (NASDAQ:ROKU) stock is 6% higher at the open, after Needham said it sees the streaming company being bought for a “large premium” within the next 12 months. The analyst in question maintained its “buy” rating and $100 price target on ROKU.

Roku stock has now broken above $80, which has kept a lid on shares since mid-September. The equity is also on track to fully recover the 5.9% it’s lost over the last three months, and has increased its year-to-date lead to more than 10%.

Coming into today, the majority of analysts were bearish, which leaves room for sentiment to shift and help propel ROKU higher. Specifically, 14 of 26 covering brokerages rate the stock a “hold” or worse.”

Meanwhile, short interest is up 40.2% in the most recent reporting period. The 12.52 million shares sold short represent 9.9% of the stock’s available float, or more than three days’ worth of pent-up buying power. 

 

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