SHARES of Roku Inc surged over 11% today after Citi initiated coverage of the streaming video company with a “buy” rating, while Netflix Inc also rallied more than 11% 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 US$180 (RM750.51) price target, compared with yesterday’s price of about US$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 US 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 US$534 price target, below yesterday’s price of around US$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%. – Aug 27, 2020, Reuters
