Needham Believes Roku (NASDAQ: ROKU) Still Has Room to Grow

By Jason Carr

In a report released today, Laura Martin from Needham assigned a Buy rating to Roku (ROKUResearch Report), with a price target of $400.00. The company’s shares closed last Wednesday at $342.95, close to its 52-week high of $363.44.

According to, Martin is a top 100 analyst with an average return of 29.8% and a 68.0% success rate. Martin covers the Services sector, focusing on stocks such as Peloton Interactive, World Wrestling, and Walt Disney.

Roku has an analyst consensus of Moderate Buy, with a price target consensus of $295.22, implying a -9.2% downside from current levels. In a report issued on January 5, Wells Fargo also maintained a Buy rating on the stock with a $414.00 price target.

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Based on Roku’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $452 million and net profit of $12.95 million. In comparison, last year the company earned revenue of $261 million and had a GAAP net loss of $25.16 million.

Based on the recent corporate insider activity of 103 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROKU in relation to earlier this year.

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Roku, Inc. engages in the provision of a streaming platform for television. It operates through the following business segments: Player and Platform. The Player segment consists of net sales of streaming media players and accessories through retailers and distributors, as well as directly to customers through the company’s website. Its Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services that suit their budget and needs. Its product categories include advertising, Roku TVs and Streaming Players. The company was founded by Anthony J. Wood in October 2002 and is headquartered in Los Gatos, CA.