Roku price target raised to $100 from $93 at Wedbush

Wedbush analyst Michael Pachter raised the firm’s price target on Roku to $100 from $93 and keeps an Outperform rating on the shares. The firm notes that macroeconomic headwinds and a weak advertising business have pressured ARPU throughout 2023, overshadowing Roku’s meaningful and growing share gains as ad dollars continue to shift from linear TV to digital connected TV. Once macroeconomic trends improve, Roku is poised to return to meaningful profitability as a platform and free ad-supported TV channel leader, Wedbush argues. The firm thinks the inflection point on ad spend will arrive by year-end, assuming no major economic shifts before then. Even with the macro headwinds, Roku has shown resilience by expanding some of its key platform sub-segments and diversifying its advertising product offering, it adds.