Investment Highlights. In this report, we discuss the relative strategic positions of Roku vs Netflix, update Roku's key value propositions, and summarize 2019 OTT industry research. Roku remains our top mid-cap pick for 2019, and we raise our Roku price target to $150 (from $120). Key take-aways from this report include: a) given similar valuations, we prefer Roku to NFLX; b) Roku's value proposition to advertisers is growing; c) SVOD rev shares represent upside to Roku estimates in 2020 and 2021; d) Roku is the dominant internet aggregator for streamed TV & movie content, like YouTube is for user generated content, at about 1/20th the valuation.
Roku vs Netflix: Who Wins? -- Needham & Co.
