Roku upgraded to Outperform from Neutral at Baird

Baird upgraded Roku (ROKU) to Outperform from Neutral with a price target of $90, up from $70. The shares are down 25% year-to-date and are overlooking the “meaningful changes in the business and the attractive long-term opportunity,” the analyst tells investors in a research note. The firm says its optimism is predicated on increasingly favorable industry trends, positive developments in Roku’s strategy, and “encouraging early indicators” in the company’s recent results. Investor expectations seem better calibrated post the Q3 report and from here, Baird sees potential upside to the estimates and valuation over time.