Roku has spiked almost 300% this year — and a Wall Street analyst just said it could rally another 30% (ROKU)

Daniel Strauss

October 11, 2019 5:55 PM

RBC Capital Markets analyst Mark Mahaney upgraded Roku's rating to "outperform" from "sector perform," and boosted his price target to $155 from $107.

Roku stock nasdaq

The analyst sees about 30% upside for the shares thanks to Roku's "favorable positioning as one of the best plays on ad-supported OTT."
Shares of Roku climbed as much as 6.8% on the news, bringing the stock's year-to-date rally to nearly 300%
Watch Roku trade live on Markets Insider .

Roku's shares have surged almost 300% in 2019 and they could rise another 30%, according to RBC Capital Markets analyst Mark Mahaney.

Mahaney on Friday upgraded Roku to "outperform" from "sector perform" and increased his price target to $155 from $107. He cited the company's attractive valuation amid a recent pullback in the shares.

Roku's shares are currently trading about 30% below recent highs, which makes from an attractive entry point into the stock, Mahaney said.He also added that Roku has "favorable positioning as one of the best plays on ad-supported OTT."

Roku's unique positioning comes from its aggregation model. The company sells Smart TVs and streaming players that allow customers to access a huge slate of direct-to-consumer platforms like Netflix and Hulu.

Bullish analysts have argued that as more services roll out from Disney , AT&T , and Apple in the coming months, Roku stands to benefit by acting as a distributor.

"It should serve as a highly effective customer acquisition channel for new OTT launches and offerings given its 31MM active accounts," Mahaney said in a note to clients on Friday.