Roku (NASDAQ:ROKU) is up 7.4%, joining in tech's relief rally today after five straight sessions of settling lower.
Thursday it announced its first original adult animation, and it's the recipient of some new bullish commentary on Wall Street. Vertical Group says it's "high conviction bullish" on the company with focus on the rebound in ad spending.
At Deutsche Bank, the word is "don't change the channel" as the analysts think the sell-off is "overdone."
The stock price has fallen by about 50% in three months, but Roku is "well positioned and the market leader in the rapidly growing connected TV market," Deutsche Bank says.
It agrees Q4 earnings could be a positive catalyst as checks show ad strength despite worries about brands cutting spend due to supply chain issues. Short-term "overhang" could persist on the issues of active account growth and few details on international expansion, though.
It's cut its price target to $300 from $400, now still implying a hefty 68% upside.
Roku says its first adult animated scripted series, Doomlands, will make its debut on The Roku Channel Jan. 28. Also this week in content news, it plans to bring a biopic about musician "Weird Al" Yankovic, starring Harry Potter veteran Daniel Radcliffe, to The Roku Channel.