Analyst Mark Mahaney from Evercore ISI maintained a Hold rating on Roku (ROKU – Research Report) and increased the price target to $105.00 from $75.00.
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Mark Mahaney has given his Hold rating due to a combination of factors surrounding Roku’s financial performance and market conditions. The company’s Q1 revenue and EBITDA estimates appear achievable, with positive intra-quarter ad channel checks, although there is some softness in specific sectors like automotive. Roku’s history of conservative guidance, often exceeding expectations, adds a layer of confidence to these projections.
However, caution is advised for Q2 due to macroeconomic volatility and potential impacts on advertising spending, alongside possible margin compression from tariffs. While management has downplayed the tariff impact, the full extent of reciprocal tariffs was not known at the time of their statements. Overall, these mixed signals contribute to a Hold rating, balancing potential growth with existing uncertainties.
In another report released on April 17, Piper Sandler also initiated coverage with a Hold rating on the stock with a $65.00 price target.
ROKU’s price has also changed moderately for the past six months – from $76.050 to $68.140, which is a -10.40% drop .