William Blair analyst Ralph Schackart has maintained their bullish stance on ROKU stock, giving a Buy rating on October 28.
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Ralph Schackart has given his Buy rating due to a combination of factors including Roku’s achievement of positive operating income for the first time since 2021, which marks a significant turning point for the company. This milestone was reached ahead of the company’s previous projections, suggesting a promising trend in profitability as revenue is expected to outpace expenses.
Additionally, the launch of Roku’s new ad-free streaming service, Howdy, is seen as a strategic move to tap into a large, underserved market. With a substantial content library and a competitive price point, Howdy has the potential to become a major business segment. Furthermore, Roku’s dominant market share in TV operating systems across the U.S., Canada, and Mexico, along with its extensive user base, provides ample opportunity for monetization. The company’s advancements in its advertising platform, including integrations with AppsFlyer and FreeWheel, further diversify and enhance demand, supporting the positive outlook.
Schackart covers the Communication Services sector, focusing on stocks such as Meta Platforms, Roku, and Netflix. According to TipRanks, Schackart has an average return of 14.6% and a 60.00% success rate on recommended stocks.