Roku Inc.'s (ROKU)better-than-expected results ( ) earned the company two analyst upgrades on Thursday, with both Stephens and Rosenblatt turning positive on the streaming company. "The quarter benefited from the revaluation of multi-element content distribution agreements (called out by management but not quantified), but we believe Roku's fundamentals remain sound and that its nexus business model will continue to power solid financial results," wrote Stephens analyst Kyle Evans, who raised his rating on the shares to overweight from equal weight and increased his price target to $120 from $84. Rosenblatt's Mark Zgutowicz moved to buy from neutral, writing that the company is "essentially 'out-scaling' the unowned content model." He raised his target price to $134 from $77, and his new target makes him the most upbeat analyst among those tracked by FactSet. Roku shares are up 22% in Thursday trading, bringing their year-to-date gains up to 300%. The S&P 500 has increased 16% so far this year.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 08, 2019 10:57 ET (14:57 GMT)
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