Roku downgraded to Underperform from Hold at Jefferies

Jefferies analyst Andrew Uerkwitz downgraded Roku (ROKU) to Underperform from Hold with a price target of $30, down from $45. A "significantly slower" digital advertising market is not reflected in near-term consensus expectations for Roku while the long-term trajectory of the business "remains unclear," Uerkwitz tells investors in a research note. The analyst expects Netflix (NFLX) and Disney+ (DIS) to capture the majority of incremental connected TV ad spend in 2023 and 2024. Excluding the two new entrants, the industry is growing low single digits, says Uerkwitz.