Shares of Roku (NASDAQ:ROKU) are slightly higher today after Raymond James assigned the stock a Hold rating. The firm, via analyst Andrew Marok, acknowledges Roku’s robust position in the streaming domain, with a solid viewer base surpassing 70M households. In addition, it also highlighted Roku’s potential in the connected TV advertising landscape, thanks to multiple strategies to expand its ad business.
On the flip side, some caution was expressed by Marok. The immediate future seems shaky, given the unpredictability in the ad sector, especially in areas directly affecting Roku. Additionally, profitability is questioned due to anticipated EBITDA losses, at least until Roku fine-tunes its cost structure next year. The analyst marked Roku with a “Moderately Aggressive Risk/Wealth Accumulation” suitability rating, citing the company’s brief operational history and the inherent volatility of ad market trends.
What is the Fair Value of Roku?
Overall, analysts have a Moderate Buy consensus rating on ROKU stock based on nine Buys, 12 Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $86.35 per share implies 26.61% upside potential.