New Mission, New Website coming soon! Learn more now.

Equities logo
Search
Close this search box.

Roku, Netflix Sail on Positive Analyst Reports Wednesday

Citi analyst Jason Bazinet highlighted Roku's strong subscriber metrics, while Piper analyst Yung Kim published positive notes on Netflix.

By Noel Randewich

(Reuters) – Shares of Roku Inc surged over 11% on Wednesday after Citi initiated coverage of the streaming video company with a “buy” rating, while Netflix Inc rallied nearly 12% and was on track for its largest one-day gain in three years.

Roku and Netflix are among several technology-related companies that have benefited as a result of the coronavirus pandemic, with people around the world spending more time at home.

Citi analyst Jason Bazinet started coverage of Roku with a $180 price target, compared with Wednesday’s price of about $164.

In his research note published late on Tuesday, Bazinet pointed to strong subscriber growth and increased value per subscriber, in a trend he suggested would also benefit Netflix.

Also on Tuesday, Piper Sandler analyst Yung Kim published a survey that found most U.S. Netflix subscribers were willing to accept a price increase. Kim’s survey also found that more subscribers planned to keep Netflix than other video streaming services after the COVID-19 crisis subsides.

Kim rates Netflix “overweight,” with a $534 price target, below Wednesday’s price of around $545.

Netflix’s stock was set to close with its largest one-day gain since July 2017. Netflix’s shares are up more than 60% year-to-date, while Roku has gained over 20%.

Reporting by Noel Randewich in San Francisco; Editing by Matthew Lewis

_____

Source: Reuters