Piper Sandler raised the firm’s price target on Roku (ROKU) to $75 from $60 and keeps a Neutral rating on the shares. The firm notes shares are down despite platform revenue moving materially higher in the second half of 2024, as buy-side expectations were high into the print. Specifically, Piper believes the disappointment stems from the now apparent lack of acceleration in 2025 revenue, the lack of acceleration in the Q4 platform revenue guide, and the Q4 EBITDA guidance putting a damper on the profitability trajectory. From the firm’s perspective, management appears to be executing against its three-pronged growth strategy, particularly with early signs of success with Trade Desk (TTD) integration.
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