Roku price target lowered to $100 from $125 at Wedbush

Wedbush lowered the firm’s price target on Roku (ROKU) to $100 from $125 and keeps an Outperform rating on the shares. Roku’s 2024 results, 2025 EBITDA guidance, and forecast for positive operating income in 2026 underscore Roku’s laser focus on profitable expansion, the firm notes. Wedbush believes the likely impact of tariffs on Roku-branded and-licensed TV sales in the U.S. can be partially offset by accelerated international expansion, discounting Roku sticks and players as Americans trade down while TV prices are high, and expanding ARPU for existing users through more ad inventory and enhanced targeting, M&E recovery, and adding more full-funnel e-commerce option for advertisers. The firm expects Roku to continue gaining market share as ad dollars shift from linear TV to connected TV, particularly as advertisers must optimize constrained budgets in 2025.