Roku upgraded to Neutral at Atlantic with outlook stabilizing

As previously reported, Atlantic Equities analyst Hamilton Faber upgraded Roku to Neutral from Underweight with a price target of $76, up from $40, following Q4 results that were better than expected, driven by ad performance. Q1 revenue guidance was for "a reassuring normal" 20% Q4 to Q1 sequential decline and the firm’s FY23/24 revenue and gross margin estimates are little changed post these results, in what it calls "a stark contrast to the material cuts of recent quarters." The firm, which sees the outlook stabilizing for Roku, also said it sees investor confidence returning.