Roku Inc. (NASDAQ:ROKU) shares moved higher, and Macquarie analyst Tim Nollen raised the price target on the stock from $72 to $90 on Thursday. Here's a look at what to know.
The Details: The Macquarie analyst noted that the Roku Channel is gaining share with 1.7% of television time, and the company is making moves to monetize its user base of 84 million active accounts.
Nollen pointed to Roku's new self-service Ads Manager tool as a way for smaller advertisers to find audiences on Roku. Ads Manager includes features designed to draw e-commerce merchants like shoppable ads that allow consumers to complete purchases directly using their Roku remote.
Nollen highlighted Ad Manager's solid CPM pricing strategy which is more shielded from pricing pressures faced by premium streaming platforms, like Netflix and Disney+.
The analyst added recent subscription price increases across streaming services that Roku hosts provide an additional catalyst for revenue growth. Macquarie expects revenue growth of between 14% and 15% in both fiscal year 2024 and 2025.
According to data from Benzinga Pro, Roku shares have gained more than 15% over the past month and are trading above the stock's 50-day moving average of $65.05.
ROKU Price Action: According to Benzinga Pro, Roku shares ended Thursday's session 1.71% higher at $75.45.
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