Streaming device maker Roku saw its shares climb after KeyBanc Capital Markets analyst Evan Wingreen upped his price target on the stock from $67 to $81.
According to the analyst’s channel checks, there has been relatively stable year-over-year customer growth for the company in July and August.
The analyst is optimistic about the company’s Roku Channel, noting that search volume for the company’s ad-supported channel is up sequentially so far this quarter.
Wingreen wrote in his note, “Awareness of the Roku Channel remains small as compared to other major streaming options, but has potential to ramp as Roku’s content acquisition and marketing efforts continue to accelerate, and the channel expands further off platform.”
“Despite the deceleration, we believe that ad-supported adoption of streaming clearly continues to ramp above expectations,” Wingren also said. “In fact, we believe vMVPD adoption has been significant enough to drive subscriber growth for the traditional media sector. This is a long-term bullish signal for Roku, as continued growth in ad supported streaming consumption will ultimately trickle down to the platform and The Roku Channel, in our view.”
The analyst also noted Roku’s recent new partnership with JVC and that it is driving additional optimism. JVC will begin integrating Roku’s operating system in its TVs later this year.
“Although JVC is a small OEM, the continued roll-up of OEMs and more SKUs in the market represents another indicator that momentum of the platform is continuing, in our view,” said Wingreen.
In an August 28th blog post, Roku had written, “Today we welcome the JVC brand to the Roku TV™ licensing program! For more than 90 years JVC has been delivering quality video and audio products and we look forward to working with the team to grow the JVC smart TV presence in the U.S.”
“The first HD JVC Roku TVs are expected to ship later this year. They will leverage TV hardware reference designs and the Roku operating system, giving customers access to an ever-growing library of entertainment (500,000+ movies and TV episodes!) as well as regular, automatic software updates offering the latest and greatest features.”
“Stay tuned for more details on the JVC Roku TVs in the coming months.”
Shares of Roku have soared nearly 70% in the last three months.