Roku (ROKU – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Kurnos from Benchmark Co. maintained a Buy rating on the stock and has a $130.00 price target.
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Daniel Kurnos has given his Buy rating due to a combination of factors surrounding Roku’s strategic partnership with Amazon. This collaboration marks a significant advancement for Roku as it integrates more deeply with Amazon’s DSP, which is a pivotal move in expanding their platform within the competitive CTV landscape. The partnership is expected to enhance Roku’s market position and drive growth, with Magnite also benefiting as Roku’s preferred SSP partner, potentially increasing their transaction volume.
Furthermore, Kurnos anticipates that this deal will pave the way for further integrations, such as with DV360, positioning Roku as both DSP agnostic and ubiquitous. He also notes that the economic terms of new deals are improving, suggesting that future collaborations, including potential shoppable features with Amazon, could be highly lucrative. Overall, these developments indicate a promising growth trajectory for Roku, justifying the Buy rating.
According to TipRanks, Kurnos is a 4-star analyst with an average return of 3.5% and a 48.12% success rate. Kurnos covers the Communication Services sector, focusing on stocks such as Roku, E. W. Scripps Company Class A, and Magnite.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $100.00 price target.