Benchmark Co. analyst Daniel Kurnos maintains $Roku Inc (ROKU.US)$ with a buy rating, and adjusts the target price from $105 to $100.
According to TipRanks data, the analyst has a success rate of 47.7% and a total average return of 1.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Roku Inc (ROKU.US)$'s main analysts recently are as follows:
Roku's Q3 outcomes and Q4 forecasts surpassed expectations, influenced by political advertising, heightened prices from SVOD platforms, and initial gains from partnerships with third-party DSPs. Nonetheless, challenges are anticipated in maintaining accelerated platform revenue growth in the coming year due to difficult comparisons with political ad revenue and a deceleration in third-party DSP contributions, all within a highly competitive CTV industry.
Roku's third-quarter results surpassed expectations across all metrics, with fourth-quarter revenue projections also exceeding consensus. However, anticipated profits for Q4 were somewhat below expectations. Engagement on the platform remained robust, evidenced by a 20% rise in viewing hours, gains per streaming viewer, and an 80% year-over-year increase for The Roku Channel. Additionally, preliminary assessments suggest only a modest increase in costs for the upcoming year, potentially contributing to continued margin growth.
Roku's third-quarter results surpassed expectations, however, the forecast for growth dynamics going into the fourth quarter of 2024 and the first half of 2025 seems less predictable. Analysts suggest that greater clarity is necessary for a more optimistic outlook, considering the company's valuation appears steep based on the new estimates for its 2025 EV/EBITDA multiples.
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