On Nov 01, major Wall Street analysts update their ratings for $Roku Inc (ROKU.US)$, with price targets ranging from $67 to $100.
Morgan Stanley analyst Benjamin Swinburne maintains with a sell rating, and adjusts the target price from $60 to $67.
Macquarie analyst Tim Nollen maintains with a buy rating.
KeyBanc analyst Justin Patterson maintains with a hold rating.
Benchmark Co. analyst Daniel Kurnos maintains with a buy rating, and adjusts the target price from $105 to $100.
Furthermore, according to the comprehensive report, the opinions of $Roku Inc (ROKU.US)$'s main analysts recently are as follows:
Q3 results and Q4 forecasts surpassed expectations, fueled by political advertising, subscription video on demand (SVOD) platforms' price hikes, and initial gains from partnerships with third-party Demand-Side Platforms (DSP). Yet, challenging comparisons due to political factors and a deceleration in third-party DSP contributions may pose risks to the platform's revenue growth acceleration in the upcoming year amidst a more competitive Connected TV (CTV) industry.
Roku's Q3 platform revenue growth and the projected approximately 14% platform revenue growth for Q4 were deemed 'solid'. However, the concern arises from the omission of any reference to accelerating growth in 2025, which may lead to near-term pressure on the stock due to high investor expectations.
Roku's third-quarter results surpassed expectations across all metrics, and forecasts for fourth-quarter revenue are also exceeding consensus. However, the projection for fourth-quarter profits was marginally below expectations. Engagement remains robust with a 20% rise in viewing hours, increases in streaming per viewer and an 80% year-over-year growth for The Roku Channel. It's also observed that costs are likely to rise only slightly in the following year, potentially contributing to further margin expansion.
The firm observes that Roku's substantial outperformance in Q3 is tempered by a growth trajectory into Q4 of 2024 and the first half of 2025 that appears less predictable. The firm suggests that a clearer outlook is necessary to support a more optimistic scenario given Roku's valuation, which stands high at 27 times the firm's projected 2025 EV/EBITDA.
Here are the latest investment ratings and price targets for $Roku Inc (ROKU.US)$ from 4 analysts:
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