Roku extends its gains since December to almost 400% (ROKU)

• Roku extended its gains since December to nearly 400% after Needham lifted its price target to a new Wall Street high.
• Needham says the company is poised to profit off the introduction of new streaming services.
• As a record number of services hit the market, Roku will act as "an arms dealer for high quality internet-delivered TV and movie content," analyst Laura Martin said.
• Monday's jump adds to a four-day streak of gains that began after Roku bested Wall Street estimates for its second-quarter earnings.
• Watch Roku trade live here.

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Roku is up almost 400% since December after Needham boosted its price target to a Wall Street high.

The streaming platform company is "the dominant internet aggregator for streamed TV & movie content," Needham analyst Laura Martin wrote in a Monday note. She deemed Roku the firm's top mid-cap stock pick for 2019 and pushed its price target to $150 from $120, a new high among price target estimates.

The company's "value proposition to advertisers is growing," Martin added. With Apple, NBCUniversal, WarnerMedia, and Disney all releasing streaming services in the near future, Roku's position as an aggregator of those services allow it to profit off the service war, the note said.

"Roku is an arms dealer for high quality internet-delivered TV and movie content," Martin said.

Roku shares shot up as much as 22% after it crushed Wall Street estimates in its second-quarter report released August 8. The company reported revenue of $250.1 million, beating the $224.5 million estimate. Earnings per share reached -$0.08, better than the $0.21 loss expected. Roku saw its highest growth rate since its 2017 IPO, CEO Anthony Wood said in the report.

The company is on a four-day streak that's seen its stock jump 36%. Shares rose as much as 9% Monday. The company is up about 336% year-to-date.

Roku has nine "buy" ratings, five "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $120, according to Bloomberg data.

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