Wolfe Research upgraded ROKU to "outperform" from "peer perform"
Roku Inc (NASDAQ:ROKU) stock surging today, last seen up 6.3% to trade at $74.55 at last glance, after Wolfe Research upgraded the streaming giant to "outperform" from "peer perform," and set its price objective at $93.
There is plenty of room for more analysts to turn bullish. Coming into today, 14 of the 24 firms in coverage called the stock a tepid "hold" or worse, while the 12-month consensus target price of $71.44 is a slim 4.3% premium to current levels. It's also worth noting 7.9% of Roku stock's available is sold short, suggesting a short squeeze may still fuel tailwinds.
ROKU is bouncing off support at the 20-day moving average and trading at its highest level since February. The shares are also pacing for a fifth consecutive daily gain and boast a 23.7% quarter-to-date lead, though they still carry an 18.7% deficit for 2024.
Options bulls are chiming in as well, with 55,000 calls across the tape so far today, which is triple the intraday average volume. The most popular contract by far is the weekly 9/13 75-strike call.
For those looking to bet on the stock's next move higher, options are an affordable route. ROKU's Schaeffer's Volatility Index (SVI) of 48% stands in the 11th percentile of its 12-month range, meaning options traders are now pricing in low volatility expectations.