By Dhirendra Tripathi
Investing.com – Roku stock (NASDAQ:ROKU) traded 3% higher in Thursday’s premarket on getting an upgrade from Guggenheim to ‘buy’.
Putting a tag of $395 on the stock, Guggenheim’s Michael Morris cited strength in the advertising market and rising comfort with impression-based advertising as factors behind his optimism. The target price translates into an upside of nearly 22% from the stock’s Wednesday close.
According to the analyst, the company’s bolstering of its original content is also likely to attract advertisers.
Morris also placed his confidence in the company’s international expansion, saying this would expand its total addressable market. Earlier this month, Roku said it plans to market streaming devices in Germany this year.
As per Morris, incremental market launches should get easier as key large markets are established.
The analyst also expects Roku’s acquisition of Nielsen’s advanced video advertising business to position it strongly in assessing viewer behavior.