Roku downgraded to Hold from Buy at Loop Capital

Loop Capital downgraded Roku to Hold from Buy with an unchanged price target of $85. The analyst commends the cost controls under new CFO Dan Jedda but says Roku’s latest restructuring signifies the potential for slower revenue growth in 2024. There is less margin of error at the stock’s current valuation, particularly with a challenging environment for media and entertainment advertising as the streaming companies have shifted their focus to profits from growth, the analyst tells investors in a research note. Despite the downgrade, Loop believes Roku is well positioned as a leader in the connected TV ecosystem for longer term investors.