In a report released today, Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on Roku, with a price target of $135.00.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors that highlight Roku’s strong market position and growth potential. The company’s solid third-quarter results, coupled with robust guidance for the fourth quarter, demonstrate its ability to perform well in a competitive environment. Roku’s initiation of a $50 million share repurchase program and stronger-than-expected free cash flow further underscore its financial health.
Roku’s strategic positioning as a leading streaming platform, with significant penetration in the U.S. broadband market and ongoing international expansion, supports its growth trajectory. The company’s best-in-class product offering and the increasing engagement with its Roku Channel position it favorably against larger competitors. Despite potential risks, such as content cost inflation and competition from major players, Roku’s valuation appears attractive, and its dominance in a niche market is not fully reflected in its current stock price.
Wlodarczak covers the Communication Services sector, focusing on stocks such as Comcast, Alphabet Class C, and Charter Communications. According to TipRanks, Wlodarczak has an average return of 3.8% and a 52.62% success rate on recommended stocks.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $130.00 price target.