<![CDATA[Roku and Netflix surge more than 11 percent after upbeat analyst reports]]> https://usagag.com/2020/08/26/roku-and-netflix-surge-more-than-11-percent-after-upbeat-analyst-reports/ Wed, 26 Aug 2020 20:25:13 +0000 hourly 1 https://usagag.com Roku and Netflix surge more than 11 percent after upbeat analyst reports Shares of Roku surged over 11 percent Wednesday after Citi initiated coverage of the streaming video company with a “buy” rating, while Netflix also gained more than 11 percent in a rally that put it on track for its largest one-day gain in three years.

Roku and Netflix are among several technology-related companies that have benefited as a result of the coronavirus pandemic, with people around the world spending more time at home.

Citi analyst Jason Bazinet started coverage of Roku with a $180 price target, compared with Wednesday’s price of about $164.

In his research note published late Tuesday, Bazinet pointed to strong subscriber growth and increased value per subscriber, in a trend he suggested would also benefit Netflix.

Also on Tuesday, Piper Sandler analyst Yung Kim published a survey that found most US Netflix subscribers were willing to accept a price increase. Kim’s survey also found that more subscribers planned to keep Netflix than other video streaming services after the COVID-19 crisis subsides.

Kim rates Netflix “overweight,” with a $534 price target, below Wednesday’s price of around $545.

Netflix’s stock was set to close with its largest one-day gain since July 2017. Netflix’s shares are up more than 60 percent year-to-date, while Roku has gained over 20 percent.

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