Truist says Roku’s own branded TVs de-risks dependency but ‘creates friction’

Truist analyst Matthew Thornton notes that Roku will launch Roku Select and Roku Plus branded TVs in the U.S. starting Spring 2023. The TVs will span 11 models, ranging in size from 24" to 75" and in price from $119 to $999. The analyst notes that is still unknown where the TVs will be sold and where the TVs will be manufactured. Thornton believes the move de-risks dependence on third-party OEM partners, provides more control over innovation and go-to-market, and leverages Roku’s consumer brand/recognition, which he believes is likely stronger than that of third-party OEM partners. However, it also creates friction with third-party OEM partners, he argues. Thornton has a Buy rating and a price target of $90 on the shares.