MoffettNathanson media/Internet look praises Fox; sees long-term upside for Netflix, Roku (NASDAQ:ROKU)

MoffettNathanson’s latest look at media/Internet names raises the specter of whether the sector is in a bubble – comparing current valuation approaches to those taken in the dot-com bubble-and-crash of 1999-2000.

But the firm sees some long-term value in premium names due to structural tailwinds; that includes names it’s Neutral on, like Roku (NASDAQ:ROKU), where it’s raised its price target to $170 from $145, and Netflix (NASDAQ:NFLX), where it maintains a target of $390.

On the positive side, it still sees Fox (NASDAQ:FOXA) as a Buy due to fundamentals and an attractive valuation. It’s bumped that price target to $37 from $36 (implying 42% upside).

And on the downside, it thinks Omnicom (NYSE:OMC) has limited upside and rates it a Sell. Its price target of $45 implies 11.5% downside.

The firm reiterated its Neutral rating on ViacomCBS (NASDAQ:VIAC) but raised its price target to $27 from $25 (vs.

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Did you know: Roku was nearly a part of Netflix

Roku is a household name in the United States, making some of the best and most popular streaming devices on the market. But did you know that Roku was very nearly a part of Netflix?

In fact, it was Netflix engineers that developed the first Roku device. It was slated to launch in 2007, the same year that Netflix launched its now-ubiquitous video-on-demand service. But just a few weeks before this “Netflix Player” came to market, the strategy shifted and it was instead spun off into its own company.

Here’s the full story, but first a bit of context.

A bygone era

Netflix dramas on smartphone stock photo 4

It’s easy to forget in today’s streaming-centric society that things were very different back in 2007. Netflix’s main business was mail-in DVD rentals, and the entire concept of video streaming was in its infancy. Even early versions of Vimeo and YouTube were just starting to get off the

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