Shares of Roku Inc. (ROKU) dropped 5.4% in morning trading Tuesday, and has now plunged 40% in a little over two weeks, but Oppenheimer analyst Jason Helfstein said that the recent selloff has created a "buying opportunity" as it just represents just an unwind in momentum stocks. Helfstein affirmed his outperform rating and $155 stock price target, which he had raised on Friday from $120 ( ), saying he believes concerns over competition from Comcast Corp.'s (CMCSA) Xfinity Flex offering have been "overblown in press reports ( )" as he believes there are "hurdles to consumer adoption." Among the hurdles, Helfstein said Flex requires Comcast's xFi Advanced Gateway modem and existing premium channels have to be canceled and repurchased. Separately, Helfstein said download data from Android suggests current third-quarter active accounts estimates are conservative, with additional bullish third-party data on July player sales. "We believe the unwind of momentum has been the main reason for the stock correction, and presents a buying opportunity," Helfstein wrote in a note to clients. The stock, which has lost 40% since closing at a record $169.86 on Sept. 6, has still more than tripled (up 231.5%) year to date. Meanwhile, the S&P 500 has gained 0.6% since Sept. 6 and has climbed 19.6% this year.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 24, 2019 11:03 ET (15:03 GMT)
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