Shares of streaming-TV platform company Roku (ROKU -7.10%) jumped on Thursday morning by as much as 5.2%. As of 1:30 p.m. EDT, the stock was trading 4.5% higher.
Those gains were likely driven primarily by one analyst's decision to significantly increase his price target for the stock. A bullish day in the broader market -- particularly for tech stocks -- may also be contributing. As of this writing, the S&P 500 was up 0.5%, and many growth stocks like Roku were up even more.
Citi analyst Jason Bazinet upped his 12-month price target for Roku stock from $180 to $220. Increasing adoption of ad-supported video-on-demand (AVOD) services could be a major catalyst for the stock over the long haul, Bazinet believes.
Though Roku didn't provide any specific guidance when it reported its second-quarter results, management still said in its letter to shareholders that it believed its "overall revenue will grow substantially on a year-over-year basis in the second half and for the full-year 2020."
Investors may have to wait until early November -- when Roku usually reports its third-quarter results -- to get their next update on the streaming-TV company's business.