Vizio downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Vizio (VZIO) to Neutral from Overweight with a price target of $11.50, up from $10, after Walmart (WMT) announced an agreement to acquire the company for $11.50 per share in cash. Vizio shares are trading at a 4% discount to the proposed acquisition price, which limits upside unless the company receives a superior offer in the next 45 days, the analyst tells investors in a research note. However, the firm is not aware of other strategic and/or financial acquirers at this price. JPMorgan believes a competitive bid would need to come from a company that finds strategic value in Vizio’s SmartCast operating system. It thinks the tie-up makes Vizio a stronger competitor to Roku (ROKU), and expects Walmart to switch its house TV brand from Roku’s operating system to SmartCast. However, JPMorgan would be surprised to see any material Roku active account impact until perhaps early 2025.