Wedbush analyst Alicia Reese has maintained their bullish stance on ROKU stock, giving a Buy rating on February 3.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Alicia Reese’s rating is based on Roku’s promising financial outlook and strategic initiatives. Roku is expected to exceed $200 million in annual EBITDA in 2024, indicating a path to profitability as it rapidly grows its advertising business and international presence. The company’s ability to capture a larger market share as advertising shifts from traditional TV to connected TV, particularly through its expanding platform, is a key factor. This growth is further supported by Roku’s new content curation and suggestion features, which drive additional subscription and ad revenue.
Furthermore, Alicia highlights Roku’s strong position in the competitive connected TV space due to its platform solutions, user-friendly operating system, and focus on expanding advertising partnerships. The anticipated rise in advertising demand, aided by new partnerships and improved targeting, supports a positive outlook. Despite potential challenges such as lower ad pricing due to increased competition, Roku’s strategic initiatives position it well for growth, leading to the Buy rating.
In another report released on February 3, JMP Securities also reiterated a Buy rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROKU in relation to earlier this year.