Roku Shares Gains Momentum with Guggenheim’s Bullish $75 Price Target

With “potential for revenue acceleration” as justification, Guggenheim Securities upped the stock’s rating from Neutral to Buy and set a $75 price target, causing shares of streaming TV platform Roku to surge 11.87% during the afternoon trading session. The shares of Roku have had 21 swings of more than 5% in the past year, indicating their extreme volatility. However, even for Roku, these kinds of changes are quite uncommon, which suggests that the market’s image of the company was significantly impacted by this news.

Roku Shares Fell 18 Days Earlier as Markets React to Recession Fears and Weak Employment Report

The company’s last significant move occurred eighteen days ago when it fell 8.2% as the markets plummeted. Concerns about a US recession increased, and yields fell along with them. The drops came after the turbulence on Friday, August 2, when the unemployment rate increased and the July Non-Farm Payrolls report showed weaker job growth.

Because the Federal Open Market Committee decided to keep rates unchanged at 5.25%–5.50% during its meeting in July 2024, markets may also be concerned that the Fed is trailing behind in reducing rates. For instance, in the wake of Friday’s dismal jobs news, renowned economist and University of Pennsylvania professor Jeremy Siegel adopted an assertive posture, urging the Fed to immediately lower the federal funds rate by 75 basis points.

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