WMT - Roku Analysts Vouch for the Must-Advertise Platform Albeit Seek Revenue Upside to Get More Constructive | Benzinga
Roku, Inc (NASDAQ:ROKU) shares are trading lower today. Analysts slashed their price targets after the first-quarter print on Thursday.
Wedbush analyst Michael Pachter maintained Roku with an Outperform rating and lowered the price target from $80 to $75.
The reiteration reflected significant opportunities for growth in Roku’s business and its commitment to expanding profitably.
Roku reached positive annual EBITDA in 2023, one year earlier than it guided, is on a path to exceed $100 million in annual EBITDA in 2024 and should accelerate from there. Pachter noted Roku will not revert to excessive spending for long-term growth. Instead, Roku has re-focused on balancing new initiatives that result in near-term ROI with expanding FCF and tracking toward positive net income. Pachter said that Roku continues taking market share as ad dollars shift from linear to digital-connected TV (“CTV”).
Roku is also capturing an expanding share of newfront ad bookings as it adds incremental ad inventory to its platform, and it has begun to benefit from the rebound in scatter demand and pricing. Roku is also expanding beyond its OneView platform and opening up to other demand-side platforms (DSPs) to drive more advertising, Pachter ...