Roku price target raised to $100 from $81 at DA Davidson

DA Davidson analyst Tom Forte raised the firm’s price target on Roku (ROKU) to $100 from $81 and keeps a Buy rating on the shares. The firm is updating its model, noting that the increase in the higher discount rate is offset by its higher near-term sales and profitability projections as well as the roll forward in its estimates by a year. The challenging ad market could be a catalyst for a greater mix of spending moving to connected TV, and for its part, Roku is working on innovative advertising efforts such as its partnership with Shopify (SHOP), which could result in higher CPM’s in the future, the analyst tells investors in a research note.