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Needham analyst Laura Martin reiterated on Tuesday his optimistic view of Roku Inc.'s shares, saying the planned launch of a streaming service dedicated to Walt Disney Co. could be the "next lever." $ 1 billion.
Martin expects the arrival in the fall of Disney +, the new streaming service, to be a key catalyst for the Roku stock.
ROKU, + 1.83%
with additional revenue potential of $ 187 million for the company in 2024, consisting of both Disney's subscription revenue and marketing spend
DIS -1.37%
When Martin updates this forecast to 2020, it calculates a $ 135 million revenue value for next year and estimates that the launch could add nearly $ 1 billion to Roku's current valuation.
Roku shares are up 3% in pre-market trading.
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Martin argued that the launch of Disney + could have an impact on the streaming landscape. She estimates that Netflix is paying Roku the lowest fees for different streaming players for each new subscriber Roku signs, but she expects Netflix's economic situation to improve once competition increases. space. According to Martin, Netflix may need to buy more ads on the Roku platform to generate new subscribers, if those already existing are going to compete.
Read: The bravest bears of Disney improve the stock reluctantly
Nevertheless, she called Netflix "past, no future of Roku", as the company benefits more if subscribers leave Netflix and join other streaming services via the Roku platform.
Martin has a purchase price and a price target of $ 85 on the title, which she calls the best choice for the year. Shares have risen 42% in the last three months, while the S & P 500 index
SPX, + 0.11%
gained 11%.
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