1345 ET - Investors are overlooking Roku, which provides an attractive long-term opportunity, Baird analysts say in a research note. "In particular, our optimism is predicated on: 1) increasingly favorable industry trends, 2) positive developments in the strategy, and 3) encouraging early indicators in recent results," they write. As advertising dollars shift to streaming, Roku will benefit from its existing scale, analysts say. And new offerings from the company, such as home-screen ads and more landing pages to increase inventory, should provide an additional boost. While the company's 3Q was mixed, there are early signs that its investments will pay off, such as an acceleration in brand advertising and higher streaming hours, analysts say. Baird upgrades Roku to outperform and raises its price target to $90 from $70. Shares rise 5.5% to $72.70. (connor.hart@wsj.com)
(END) Dow Jones Newswires
November 18, 2024 13:45 ET (18:45 GMT)
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