Roku price target lowered to $60 from $65 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Roku (ROKU) to $60 from $65 and keeps an Underweight rating on the shares. The analyst reduced estimates for Roku, saying lower advertising growth expectations more than offset higher streaming services distribution revenues. The firms says that while Walmart’s (WMT) Vizio (VZIO) acquisition will increase competition in connected TV, the risk to Roku’s Active Account and revenue growth is likely muted in the near-term. Morgan Stanley sees limited valuation support for Roku shares in an increasingly competitive connected TV advertising market and sees risk to medium-term Platform segment gross profit expectations.