Guggenheim analyst Michael Morris upgraded Roku to Buy from Neutral and raised his price target for the shares to $119 from $75. The stock closed yesterday up $3.89 to $93.60. The analyst sees "strong secular tailwinds" for streaming video consumption and believes the company's Q1 results were representative of the core trajectory for its key metrics. Roku is one of the only pure-play streaming video companies and is "uniquely well positioned" to benefit from the continued audience shift to digital video consumption, Morris tells investors in a research note. The analyst expects continued growth in account and streaming metrics, the closing of the video advertising pricing gap with traditional television, and incremental content distribution revenue recognition to serve as key catalysts for Roku shares. His new price target is based on five-times his 2023 platform segment sales estimate of $2.8B and assigns a $1B valuation to the company's international business. Morris' bull-case scenario, which assumes a higher video advertising growth rate, implies a $130 per share value using the same valuation parameters.