Needham & Company analysts said Friday that there are positive sentiment shifts for Roku (NASDAQ:ROKU).
The analysts, who have a Buy rating and $80 price target on the stock, stated that over the past four to six weeks, the firm's incoming call volume regarding Roku has turned more positive.
They believe this is based on a number of reasons, including the ROKU Channel now being 1% of total viewing on a U.S. TV screen and CTV viewing now being more than 50% of total TV viewing in the U.S.
"Large advertisers MUST buy both CTV and linear TV, but are troubled by large fees in the Open Web, lack of consistent measurement, and fear of fraud/ad waste - Buying Roku ads solves these problems," wrote the analysts.
In addition, they noted that "OTT is mature, which drives consolidation, and ROKU is bite-size."
From a trading perspective, they stated that technically, Roku's share price has seen money inflows lately, and the stock is experiencing support at current levels.
Despite falling to a low of $62.20 earlier in the session, Roku shares are currently trading around the $63.30 mark, up 0.2%.