By Yasin Ebrahim
Investing.com – Roku struggled to turn positive Wednesday, but one analyst sees further gains ahead as the company shows signs of progress in expanding internationally.
D.A. Davidson said investors should snap up shares of Roku as the overseas potential holds plenty of promise for further growth. The investment firm has a $185 price target on Roku, implying about 38% upside. Roku (NASDAQ:ROKU) fell nearly 2%
Roku on Tuesday announced that it had launched its service in Brazil, bringing a lineup of thousands streaming channels, movies and TV episodes.
The company has taken a four-pronged approach to expand international, including creating regional tuners, aligning its service to rules and regulations in each country, developing relationships with international retailers and working with local content creators, according to D.A. Davidson.
Just a few months ago, Macquarie suggested Roku's international expansion could its user base by 200% to 300% to more than 70 million active accounts by 2022.
The push to expand abroad comes amid concerns about rising competition from incumbents like Comcast's Xfinity Flex streaming box and Facebook's Portal TV streaming device.