Roku shares are up nearly 28% within the last month but Macquarie Research thinks that rally still has room to run. The firm initiated Roku with an outperform rating and a $49 price target.
"Disintermediation of television content and services leaves Roku in a position to capitalize on its role as a new-age intermediary," analyst Paul Golding wrote in a note to clients Thursday. "Roku stands to benefit from more ads thanks to connected TV viewership."
Magna, a global marketing consultant firm, expects global digital ad spend to hit ~$100B by 2019 and keep growing – a source of potential upside highlighted in Golding's analysis.