Roku and Netflix Soar Higher on Analyst Upgrades

Shares of streaming device maker Roku and streaming king Netflix were both soaring on Wednesday over 11% on positive analyst remarks.

Citi initiated coverage on Roku for the first time, giving shares a “buy” rating. Citi analyst Jason Bazinet started coverage of Roku with a $180 price target, compared with Wednesday’s price of about $164.

Netflix Inc also soared on Wednesday and was on track for its largest one-day gain in three years.

Bazinet remarked in a research note on Tuesday that strong subscriber growth and increased value per subscriber were reasons for his position. He also said this was a trend that would also benefit Netflix.

It was on Tuesday that Piper Sandler analyst Yung Kim published a survey that found most U.S. Netflix subscribers were willing to accept a price increase. The survey revealed that subscribers planned to keep

Netflix than other video streaming services after the COVID-19 crisis subsides.

Kim has a $534 price target on Netflix shares with an “overweight” rating.

Netflix’s shares are up more than 60% year-to-date, while Roku has gained over 20%.

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