Is Roku stock worth owning ahead of earnings?

Roku Inc (NASDAQ: ROKU) has lost some 40% in less than three months but a Wedbush Securities analyst is convinced the story moving forward will be a different one. 

Roku stock could gain 30% from here

Michael Pachter continues to rate the streaming and media company at “outperform” and sees upside in its shares to $80 which suggests a more than 30% upside from here. 

The analyst is bullish on Roku stock because it has “found religion in generating and expanding [free cash flow]”. 

He’s convinced that the Nasdaq-listed firm will “not revert to excessive spending for long-term growth”. 

The bullish call arrives a couple of days before $ROKU is scheduled to post its earnings report for the first quarter. Consensus is for it to lose 64 cents a share versus $1.38 per share a year ago. 

Benchmark is also bullish on $ROKU

Michael Pachter recommends owning shares of Roku Inc because it’s taking advantage of ad dollars moving from linear to digital-connected TV. His research note also reads:

Note that Wedbush is not the only investment firm that’s keeping bullish on Roku stock. Daniel Kurnos of Benchmark also sees upside in the $8.7 billion company based out of San Jose, California to $115 per share. 

Note that $ROKU is currently trading just below its 61.8% fibonacci retracement that’s acting as a resistance.