This week, streaming player Roku must have felt he was swimming against the tide.  Roku's stock hit a hit earlier this week when media giant Comcast and social media Facebook announced threats to Roku's grass. Shares recovered when the company announced a new product line in the middle of the week, but on Friday it got a big leg up when Pivotal Research Group initiated coverage for the company ̵
"We are seeing dramatically more competition that is likely to bring down the price of OTT devices," said principal analyst Jeffrey Wladarchak in a note sent to investors on Friday morning.
While top-of-the-range device stock is over 252 percent for the year, this week is indicative of how variable the current landscape is for Roku – and other players.
Wlodarczak cites a variety of recent market developments, such as announcing Comcast as a free alternative, the Xfinity Flex streaming field, which they will give their subscribers only for the Internet, he believes "Is likely to be copied from other distributors."
This will put pressure on hardware and subscription revenue, but will improve the prospects for custom video subscription services offered through them, as we
"Unfortunately for Roku, their already high advertising splits (50/50) with OTT players, too and potentially knocking them out of competitors and the massive distribution costs of a distributor are giving them a huge impact, "the report argues.
This leads Wlodarczak to the question of how Roku can compete with the" big guys "led by Comcast, which Pivotal rates
"We think Roku's stock still looks dramatically overvalued, despite its recent download, and we're starting with a" sell "and a $ target price. 60, "concludes the report.
The report provided a bright spot for Roku, saying that "management deserves a lot of credit for what they created and Roku is one of the few OTT investment pure players."
When asked for comment, a Roku spokesman told FOX Bo siness, "We do not comment on the views of an analyst" and attempts to contact Wlodarczak for further comment were unsuccessful.
"We think Roku's stock still looks dramatically overvalued, despite its recent withdrawal, and we're starting with a" sell "and a $ 60 target price."
After closing, ringing, Oppenheimer Funds countered with announcement that they maintained their "Outperform" rating and raised their price target to $ 155 from $ 120 "After evaluating the impact of Roku's international expansion plans and a suite of new OTT streaming services coming in 4Q and 2020. [
Oppenheimer's scenario analysis a $ 200 upward scenario if "smart TV penetration continues to grow globally" and "consolidated market structure prevails." The company also estimates "that Apple +, Disney + and a combination of others (especially HBO Max) will provide $ 21 / share in combined growth, "a and that they" see Roku "contribute their funds to the US market (~ 33%), promote and sell SVOD subscriptions directly, such as competition from new entrants (Comcast & # 39; s and FB & # 39; s Portal) is too late. "
This shows Oppenheimer taking exactly the opposite view on the impact of Comcast's Xfinity Flex streaming box, as well as Facebook's offering, on Roku's prospects for moving forward.
Oppenheimer also sees the UK market adding $ 10 a share if they can take a share of legacy brands "through a similar notebook in the US: stimulating consumer acceptance through high-quality, low-cost TVs through OEM partnerships [original equipment manufacturer]."  When Wall Street opens for trading on Monday morning, it is likely this upgrade – which predicts that Roku's stock price will return to zero. the willow she opened this week – could provide dropouts.
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