Wells Fargo notes Roku announced expense reductions and guided to stronger Q3 revenue. Assuming the revenue trends continue, that plus structural cost out would potentially equal a much higher 2024 adjusted EBITDA. Wells is getting to nearly $300M-plus versus Street’s $64M estimate. Revenue/GP upside +plus material opex cuts per the charges should flow through even more strongly to adjusted EBITDA. the firm adds. Headcount alone could be $70M savings. Wells has an Equal Weight rating on the shares with a price target of $84.
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