Roku Inc. shares were higher on Wednesday after Needham named the stock its top pick for 2019, citing the streaming video company's strong position in a growing market, scale and demographic reach.
Analyst Laura Martin reiterated her buy recommendation for the stock and the price target of $ 45, which is about 64% above her current trading level.
ROKU, + 2.22%
benefited from the launch of a free, ad-supported streaming channel on the Internet at the beginning of the year, reached 24 million active accounts in the third quarter, a key indicator for Martin Its scale and reach monetized its range by 43% over the previous year, Martin said.
"The engagement lengths are strongly related to sales, and Roku now has nearly three hours a day in which users can see users," she wrote in a note. Around 1
The company is widely recognized by the largest TV ecosystem companies as an integral part of the future of streaming and OTT services, the announcement said. After all, the company may or may not be an acquisition target.  If you've missed it: Roku's free-rider Netflix could be worth $ 1 billion and attract buyers, the analyst says
Also: The man who gave us the DVR says Roku is the future of television.
Last week KeyBanc analysts said they also recommend the purchase of Roku shares, and channel checks signal a strong boost in the current quarter.
"Roku corrected the trade at a premium for its peer group at a discount, although consensus estimates provided for higher earnings after the third quarter," analysts write in a statement. "This sell-off (outside of the Tech Cup) was caused by a smaller and lumpy component of the platform business and the noise around its TCL partnership, both of which are considered exaggerated."
Roku partnered with TCL (The Creative Life), the world's third largest TV brand, in 2014 to build and deliver smart TVs running Roku's operating system. TCL announced a restructuring in December that prompted speculation to stop producing Roku TVs.
KeyBanc lowered its price target to $ 59 from $ 81.
Roku stock fell 47% in 2018, the S & P 500
SPX, + 0.75%
and the Dow Jones Industrial Average
DJIA, + 0.59%
fell by 11%.
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