Roku Inc (ROKU) witnessed a pre-market surge of 5.3% on Wednesday, driven by speculation that the company could be acquired at a significant premium in 2025. This speculation was fueled by a report from Needham analyst Laura Martin, who maintained a "Buy" rating on Roku with a $100 price target.
Martin's bullish outlook for Roku stems from the recent acquisition of Vizio by Walmart for $2.3 billion. She believes that this deal could pave the way for a potential takeover of Roku, as the company's streaming platform and advertising capabilities make it an attractive target for larger players seeking to expand their presence in the rapidly growing streaming market.
According to Martin, Roku could fetch a "large premium" in a potential acquisition, given its strong market position and growth prospects. The analyst's prediction has reignited investor interest in Roku, driving the stock higher in pre-market trading as investors speculate on the possibility of a lucrative buyout.
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