Roku Sees More Gains after BofA Increases Price Target and IMDb TV Hitting its Platform

Shares of streaming device maker Roku saw its shares head higher this week after Bank of America became even more bullish on the company.

The bank has upped its price target on the stock from $380 to $500 with analyst Ruplu Bhattacharya being optimistic about the continued shift of advertising spend to streaming platforms. The anaylst sees potential in Roku’s efforts to expand internationally as well, particularly in the U.K. and Brazil.

According to the analyst, Roku’s recent deal for Quibi content could help the company bring in $150 million to $200 million in incremental ad revenue annually.

“Roku likely paid significantly less than the $150 million it paid for its prior acquisition of DataXu,” an ad-tech platform, he wrote. “We feel Roku provides a better platform for the Quibi content as Quibi’s original plan to target people on-the-go, who watch videos on smartphones, suffered from timing of COVID-19 which forced people to stay at home.”

Bhattacharya has a buy rating on the stock.

In other recent news, Roku has a deal with Amazon.com to bring the company’s ad-supported streaming service IMDb TV to its platform in the United States.

IMDb TV was available on Amazon Fire TV devices (averaging more than 50M monthly users), and Roku had 51.2M active accounts at the end of last month.

IMDb TV is a venue for originals produced by Amazon Studios.

Shares of Roku have nearly doubled in the last three months.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.