(Bloomberg) -- Roku Inc. shares rose in pre-market trading on Friday, after the company’s fourth-quarter results beat expectations and it reported a surge in new active accounts.

Analysts said the quarter and outlook were the latest sign of strong momentum at the video-streaming platform, which has seen a boost from consumers cutting the cord on traditional cable services and moving toward on-demand services like Netflix or Disney+.

While some expressed concern about Roku’s valuation, the broad tailwind of streaming is expected to continue. Stephens wrote that a “heavy” launch cycle for streaming services in 2020 and 2021 “is likely to drive [average revenue per user] higher for the foreseeable future.”

Shares gained 10.3% before the market opened and are on track to gain a fifth day. The stock has risen nearly 40% between a September low and the close of trading on Thursday, although it remains about 18% below a record close hit last year.

Here’s what analysts are saying about the results:

Rosenblatt Securities, Mark Zgutowicz

This was a “generally stellar quarter,” and the outlook underscores Roku’s “widening scale and market leverage.”

Sees signs of “meaningful” international growth ahead.

Buy, price target raised to $190 from $159.

RBC Capital Markets, Mark Mahaney

The company’s platform business “looks like a sustainable 50% grower.” Fundamentals were “solid” in the quarter, with only a “very modest” deceleration in growth from “robust levels.”

Outperform, price target $170 from $160.

Stephens, Kyle Evans

The outlook was “in line or above consensus where it mattered most -- revenue and gross margin in its Platform segment.”

A “heavy” launch cycle for streaming video on demand services in 2020 and 2021 “is likely to drive [average revenue per user] higher for the foreseeable future.”

“Investors wanting exposure to connected T.V. will continue to bid Roku upward.”

Overweight, $155 price target.

Susquehanna Financial Group, Shyam Patil

The report and outlook “continue to highlight Roku’s strong momentum.” Active accounts rose more than expected, and “engagement growth was also strong.”

Positive, price target raised to $170 from $150.

Guggenheim, Michael Morris

“Roku holds an attractive position within an expanding global steaming market and ultimately has the potential for a higher valuation.”

Buy, $150 price target.

Loop Capital Markets, Alan Gould

“While the company has executed well, it still faces substantial potential competition.” It is “difficult to justify the $18 billion enterprise value.”

Sell, $80 price target.

SunTrust Robinson Humphrey, Matthew Thornton

Active account additions “were well ahead of consensus,” which is likely due in part to Disney+.

“Roku continues to execute and is well-placed in the secular shift to internet TV.”

However, the Ebitda outlook “is well below consensus,” and competing platforms could pressure Roku’s margins.

Hold, $160 price target.

What Bloomberg Intelligence Says:

Roku is “still well-positioned to benefit from the secular shift away from traditional pay-TV, as the company reinforced its position as the No. 1 TV streaming platform in the U.S.”

- Analyst Amine Bensaid

- Click here for the research

To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott Schnipper

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