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Investing.com — Roku (NASDAQ:ROKU) rose 3.4% on Wednesday after Deutsche Bank (DE:DBKGn) initiated the streaming company as a buy with a $185 price target.
Roku should continue to increase revenue at a rate of 30% or more for at least the next few years, with U.S. ad spending expected to double from the current annual $8 billion by 2023, Deustche Bank said.
“Roku is the market leader in the connected TV market, with close to a 50% market share,” said analyst Jeffrey Rand, according to Briefing.com.
Roku is a fast-growing and high-margin business, and the stock deserves a premium valuation, he added.
The company is seeing strong growth opportunities as more consumers and advertisers spend time and money on streaming content, Rand said.
Shares have seven buy ratings, five holds and one sell, with an average price target of $144, according to analysts tracked by Investing.com.
