Analyst Laura Martin of Needham maintained a Buy rating on Roku (ROKU – Research Report), retaining the price target of $88.50.
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Laura Martin has given her Buy rating due to a combination of factors, primarily focusing on Roku’s impressive financial turnaround under the leadership of CFO Dan Jedda. Since his arrival, Jedda has been instrumental in transforming Roku’s free cash flow from a negative $150 million in 2022 to an expected positive figure exceeding $200 million by 2024.
Furthermore, the company has provided guidance indicating that free cash flow could surpass $350 million by 2025, showcasing a strong growth trajectory. This financial improvement, along with strategic leadership, underpins Martin’s confidence in Roku’s future performance, justifying her Buy rating.
Martin covers the Communication Services sector, focusing on stocks such as Roku, Meta Platforms, and Alphabet Class A. According to TipRanks, Martin has an average return of -3.1% and a 38.37% success rate on recommended stocks.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $95.00 price target.