People antique by a video sign display with the logo for Roku, a Fox-backed video streaming firm, that held it’s IPO at the Nasdaq Marketsite in New York, September 28, 2017.
Brendan McDermid | Reuters
Divide ups of Roku jumped 9% on Wednesday after Macquarie predicted the company could experience Netflix-like growth abroad. Netflix shares slid 1.1% following the report.
Roku stands to triple its user base in the next three years by increasing into international markets, while benefiting from “powerful growth” in connected TV devices and advertising, Macquarie analysts voted in a note to clients. The firm projects Roku could reach 72 million users in 2022, up from the 30.5 million lively users it reported in the second quarter.
“We know little about the international roll-out plans, or costs beyond this year, which we employ will rise as marketing demands emerge,” said Macquarie analyst Tim Nollen. “Roku’s growth trajectory internationally could start echo that of Netflix’s, which has also tripled over the past 3 years.”
Macquarie upgraded Roku reserve to outperform from neutral and hiked its price target to $130 from $110.
Roku is primarily known for its set-top bottle ups, which aggregate TV shows and movies from a variety of content makers. The company also licenses its technology to TV makers who install it into smart TV models. Last month, Roku announced its first licensing agreement in Europe.
Roku’s parts have more than quadrupled in 2019 and have risen nearly 14% in the past three months. In the intervening time, Netflix’s stock has suffered, with shares down 29.5% in the previous three months.
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