By Liz Moyer
Investing.com -- Roku Inc (NASDAQ:ROKU) shares rose 5% on Friday after Pivotal Research raised its rating to hold from sell, saying the stock is no longer an attractive short-selling opportunity.
The streaming device maker has already forecast 2022 revenue growth of 35%, but its shares have taken a beating, down 60% this year as competition in the streaming sector escalates.
The business is "attracting dramatically larger companies with significant leverage that are not necessarily focused on generating an economic return specifically in streaming aggregation, but as a tool to gain subscribers/sell equipment" in other areas, said Pivotal analyst Jeffrey Wlodarczak.
Pivotal has an $80 price target on the stock, which was trading around $93. It is well below its high mark of $490.76 from last July.
Cathie Wood has been adding Roku to her ARK Innovation ETF (NYSE:ARKK) in recent days. Roku is now one of the fund's top holdings, at 8% of the portfolio, behind Tesla Inc (NASDAQ:TSLA) and Zoom Video Communications Inc (NASDAQ:ZM).