This Evercore ISI analyst has not lost all hope in Roku Inc

Roku Inc (NASDAQ: ROKU) shareholders are not a happy lot, with the stock down roughly 45% year-to-date. But an Evercore ISI analyst says the future still looks bright for the California-based company.

Roku is still the leading TV platform

According to Shweta Khajuria, Roku continues to be the leading TV platform despite losing market share significantly in the trailing ten months. On CNBC’s “TechCheck”, she said:

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Roku’s share has ticked down from over 35% to about 30% now, but it’s by far the leading operating system for connected TVs in the U.S. and Canada. The satisfaction levels are very high so the retention rates for Roku are likely to be a bit higher than the competing platforms.

Last month, Roku reported lower-than-expected Q4 revenue and gave dovish guidance citing supply chain issues.

Roku could triple its ARPU

Other reasons that she has a positive outlook on Roku include its average revenue per user (ARPU) that Khajuria says has a lot of room to grow. She noted:

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Linear TV ARPU ranges from $100 to even $150 for Comcast. We think that Roku’s ARPU can even exceed linear TV. They’re not even close to that, probably $50 by the end of this year and they could triple considering the drivers that could lead ARPU growth.

A day earlier, D.A. Davidson clung a price target of $200 a share on Roku stock that represents a 55% upside from here.

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